25620 Derivative Securities
6cpRequisite(s): 25556 The Financial System
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Recommended studies: algebraic manipulations, basic elements of statistics (mean, variance, covariance and correlation), abstract mathematical concepts, basic principles in finance (the time value of money and risk-adjusted discount rates)
Undergraduate
Description
This subject provides students with a basic understanding of forwards, futures, swaps and options. It covers their valuation by arbitrage arguments, their use and the management of the associated risks. A large part of this subject is devoted to applied problems dealing with situations in which students may expect to encounter derivations in practice.
Detailed subject description.
Fee information
- 2015 contribution for commencing Commonwealth-supported students: $1283 (Note: Students who commenced prior to 1 January 2010 should consult the Fees Calculator by Subject for relevant student contribution charges for Commonwealth-supported students. Not all students are eligible for Commonwealth-supported places.)
- Fees for postgraduate domestic fee-paying students and international students are charged according to the course they are enrolled in. Students should refer to the Domestic Fees Search: Postgraduate and Research or International Fees Search.
- Subject EFTSL: 0.125
Access conditions
Note: The requisite information presented in this subject description covers only academic requisites. Full details of all enforced rules, covering both academic and admission requisites, are available at access conditions and My Student Admin.
