Courses / Module

Toggle Print

DERIVATIVES 1: FORWARDS, FUTURES & SWAPS

Module code: FN307
Credits: 5
Semester: 1
Department: BUSINESS
International:

	Overview
	This course examines forwards, futures and swaps; their economic role in capital markets, the equilibrium pricing of these securities, and uses of these securities in hedging and speculative trading. Topics covered include the economic role of derivative securities, the mechanics of futures and swap markets trading, non-arbitrage pricing of forwards and futures, commodity vs. equity-index vs. foreign exchange futures, the term structure of interest rates and its relationship to swap rates, and hedging and speculative strategies using forwards, futures and swaps.

Overview

This course examines forwards, futures and swaps; their economic role in capital markets, the equilibrium pricing of these securities, and uses of these securities in hedging and speculative trading. Topics covered include the economic role of derivative securities, the mechanics of futures and swap markets trading, non-arbitrage pricing of forwards and futures, commodity vs. equity-index vs. foreign exchange futures, the term structure of interest rates and its relationship to swap rates, and hedging and speculative strategies using forwards, futures and swaps.

	Learning Outcomes
	On successful completion of the module, students should be able to: Describe the operation of Forward, Futures and Swap markets, the practical uses of these derivatives and the pricing models employed in these markets. Explain the role and operation of margins in exchange traded derivative contracts. Determine the price and value of Futures and Swap contracts. Evaluate the outcomes of hedging strategies. Illustrate the uses of interest rate derivatives. Demonstrate the uses of swap contracts.

Learning Outcomes

Teaching & Learning methods

Assessment

	Autumn Supplementals/Resits
	Are supplemental/resit registrations permitted? Yes Note: Continuous Assessment marks from first sitting of this module will be carried forward into the Autumn repeat assessment cycle. University scheduled written examination (Autumn): 120 minutes Is Supplemental Continuous Assessment registration permitted? No Is Supplemental Continuous Assessment capped? No

	Pre-Requisites
	EC205, FN205 and FN206 or their equivalent.

Timetable

Search form

Courses / Module

DERIVATIVES 1: FORWARDS, FUTURES & SWAPS

Semester 1

Semester 2