Derivative Investment
| Code | School | Level | Credits | Semesters |
| BUSI4536 | Nottingham University Business School China | 4 | 20 | Spring China |
- Code
- BUSI4536
- School
- Nottingham University Business School China
- Level
- 4
- Credits
- 20
- Semesters
- Spring China
Summary
Forward and futures contracts, how they are traded and used for hedging;Swaps;
Options – European and American styles.
Derivative valuation - Binomial trees, Black-Scholes.
Option strategies;
Compound options and real options;
Securitization;
Greek letters and portfolio insurance;
Credit derivatives.
Target Students
Business School MSc Finance and Investment students subject to compliance with module choice requirements, as listed in the degree programme specification.
Classes
- Two 2-hour lectures each week for 11 weeks
Assessment
- 30% Coursework: Individual Coursework (2500 word report)
- 20% ACP: Active class participation (20%)
- 50% Exam 1 (2-hour): Two hour exam
Educational Aims
To understand valuation models for derivative securities and the markets in which derivatives are traded.The use of derivative securities in financial risk management is also examined.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
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 Xiaoquan Liu
Last updated 09/01/2025.