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FIN-40037 - Module Specification
Keele Business School
Faculty of Humanities and Social Sciences

For academic year: 2023/24 Last Updated: 13 February 2024

FIN-40037 - Derivative Instruments
Coordinator: Robina Iqbal Room: N/A
Lecture Time: See Timetable...
Level: Level 7
Credits: 15
Study Hours: 150
School Office: 01782 733094

Programme/Approved Electives for 2023/24

None

Available as a Free Standing Elective

No

Co-requisites

None

Prerequisites

None

Barred Combinations

None

Description for 2023/24


Aims
This module introduces students to financial derivatives such as forwards, swaps and options, and their respective markets. Students will learn about the underlying techniques to value derivative securities and how they can be used to manage risk.

Intended Learning Outcomes

demonstrate a systematic awareness of the derivatives market and the role played by complex financial instruments leading to periodic market volatility and failure: 1,2
critically assess the limitations, the use and the valuation of linear pay off derivatives such as forwards and swaps: 1,2
synthesise different combinations of options to develop complex payoffs
: 1,2
critically appraise stochastic processes and their applications to price derivative securities: 1,2
demonstrate and apply risk neutral valuation methods to value derivatives and manage their risk
: 1,2
critically evaluate price options using both analytical formulae and numerical schemes: 1

Study hours

20 hour lectures
4 hour tutorials
126 hours independent study and assessment preparation

School Rules

None

Description of Module Assessment

1: Essay weighted 40%
2000 word essay
2000 word essay exploring the nature of the derivative markets and derivative instruments.

2: Open Book Examination weighted 60%
open-book assessment with a 28-hour window
28 hours online open book assessment. Students will need to answer four questions from a choice of six

Please note that for the 2022/23 Academic Year programmes may be adapted to operate in accordance with a flexible, digital approach. This means that there may be some changes made to how modules are delivered and assessed. The latest information will be provided to you by your School in module handbooks. We endeavour to give you as much notice as possible of any changes and details about the circumstance in which changes are made to programmes can be found in the Student Agreement, available at: https://www.keele.ac.uk/student-terms-and-conditions/

Last Updated: 13 February 2024