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THE UNIVERSITY of EDINBURGHDEGREE REGULATIONS & PROGRAMMES OF STUDY 2005/2006
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Archived VersionThe Degree Regulations and Programmes of Study has been formulated as a dynamic online publication in order to provide the most up to date information possible. Master versions of the Degree Regulations and Programmes of Study incorporating all changes to date are archived twice a year on 1 September and within the first three University working days prior to the start of Semester 2 in January. Please note that some of the data recorded about this course has been amended since the last master version was archived. That version should be consulted to determine the changes made. Derivatives (P00231)? Credit Points : 20 ? SCQF Level : 11 ? Acronym : MSE-P-Derivs This course will describe the nature of derivatives, including futures, options and swaps. Students will learn how arbitrage pricing operates and sets prices in a competitive market. Option-pricing models and extensions to the basic models will be studied. Students will learn how to price futures contracts, interest-rate and cross-currency swaps and options. The uses of derivatives for risk management and investment strategies will be considered. Students should also learn how to apply their knowledge of arbitrage pricing models to undertake financial engineering. The relationships and parity conditions that exist between various derivatives will also be discussed. Entry RequirementsSubject AreasHome subject areaCommon Courses (Management School and Economics), (Management School and Economics, Schedule H) Delivery Information? Normal year taken : Postgraduate ? Delivery Period : Semester 2 (Blocks 3-4) ? Contact Teaching Time : 2 hour(s) per week for 10 weeks First Class Information
Summary of Intended Learning Outcomes
At the end of the course, students should be able to formulate and explain the rationale behind the current methodologies used to price derivatives, and be able to justify the prices at which derivatives are traded. They will develop their numerical skills and be able to use a financial or scientific calculator in solving numerical problems in finance. Students should be able to formulate strategies using financial derivatives and undertake simple financial engineering.
Assessment Information
Assessment will be via a two-hour examination at the end of semester one (70% of the final mark) and a brief essay during the semester (30% of the final mark).
Exam times
Contact and Further InformationThe Course Secretary should be the first point of contact for all enquiries. Course Secretary Mrs Julie Bell Course Organiser Dr Peter Moles School Website : http://www.man.ed.ac.uk/ College Website : http://www.hss.ed.ac.uk/ |
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