Module manager: Prof. Phil Holmes
Email: P.R.Holmes@lubs.leeds.ac.uk
Taught: Semester 2 (Jan to Jun) View Timetable
Year running 2018/19
| LUBS2205 | Corporate Finance |
| LUBS2035 | Finance for Small Business |
| MATH2525 | Financial Mathematics 3 |
| MATH2540 | Financial Mathematics 3 |
This module is not approved as a discovery module
This module aims to provide students with an understanding of the underlying features and functions of futures and options, developing an appreciation and a practical understanding of the key features of major derivative instruments and the principles of derivative pricing.
Upon completion of this module students will be able to interpret and assess:
- key features of a range of derivative instruments
- ways in which financial derivatives can be used for managing risk and for trading
Upon completion of this module students will be able to:
Transferable
- Extract relevant information from structured scenarios and data in order to identify problems and define solutions
- Structure and communicate quantitative and qualitative information, ideas, analysis, argument and commentary
- Communicate in writing
- Think critically
Subject specific
- Apply derivative pricing models and identify payoffs from derivative positions
- Apply core knowledge of financial derivatives to a range of scenarios
- Competently apply their numerical and statistical skills to interrogate financial and other numerical data
Indicative content:
- An introduction to the types of derivatives, derivative markets, purpose of derivatives
- Futures and Forwards
- Mechanics of futures markets
- Determination of futures and forward prices
- Options and Option valuation
- Options Strategies
- The binomial model and the Black-Scholes model of option pricing
| Delivery type | Number | Length hours | Student hours |
|---|---|---|---|
| Lecture | 11 | 1.5 | 16.5 |
| Seminar | 5 | 1 | 5 |
| Private study hours | 78.5 | ||
| Total Contact hours | 21.5 | ||
| Total hours (100hr per 10 credits) | 100 | ||
- Follow on reading from lectures and preparation for exercises for classes.
- Students will be expected to contribute to discussion in the classes.
Students will receive verbal feedback during classes on the assigned exercises. This will provide a main resource to self-monitoring progress during the course, as will class discussion of required reading.
| Exam type | Exam duration | % of formal assessment |
|---|---|---|
| Standard exam (closed essays, MCQs etc) | 2.0 Hrs 0 Mins | 100 |
| Total percentage (Assessment Exams) | 100 | |
The resit for this module will be 100% by 2 hour examination.
The reading list is available from the Library website
Last updated: 12/12/2018
Errors, omissions, failed links etc should be notified to the Catalogue Team