Derivative Investment

Code

BUSI4513

School

Nottingham University Business School

Level

4

Credits

20

Semesters

Spring Malaysia

Summary

Forward and futures contracts, how they are traded and used for hedging.
Stock price modelling.
Derivatives - European and American styles.
Derivative valuation - Binomial trees, Trinomial trees, Monte-Carlo, Black-Scholes.
Stock indices, futures on stock indices, options on futures.
Compound options and real options.
 

Target Students

Core course for MSc Finance and Investment

Classes

• One 4-hour lecture each week for 11 weeks

Assessment

• 30% Coursework 1: Individual coursework (2500 words report)
• 70% Exam 1 (2-hour): 2-hour Examination

Educational Aims

Learning Outcomes

Knowledge and understanding
This module develops a knowledge and understanding of:

• Finance - the sources, uses and management of finance

Intellectual skills
This module develops:

• Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
• Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
• Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills

Professional practical skills
This module develops:

• The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of quantitative data, synthesis and reporting

Transferable (key) skills
This module develops:

• Effective communication: networking, listening, oral and written communication of complex ideas and arguments, using a range of media, including the preparation of business reports
• High personal effectiveness: critical self-awareness, self-reflection and self-management; time management; conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience

Conveners

• Dr Kin Boon Tang