Postgraduate Course: Derivatives (CMSE11056)
Course Outline
| School |
Business School |
College |
College of Humanities and Social Science |
| Course type |
Standard |
Availability |
Available to all students |
| Credit level (Normal year taken) |
SCQF Level 11 (Postgraduate) |
Credits |
10 |
| Home subject area |
Common Courses (Management School) |
Other subject area |
None |
| Course website |
None |
|
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| Course description |
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 Requirements
| Pre-requisites |
|
Co-requisites |
|
| Prohibited Combinations |
|
Other requirements |
None
|
| Additional Costs |
Financial or Scientific Calculator (approximately £20) |
Course Delivery 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 (100% of the final mark). |
| Please see Visiting Student Prospectus website for Visiting Student Assessment information |
Special Arrangements
| Not entered |
Contacts
| Course organiser |
Dr Peter Moles
Tel: (0131 6)50 3795
Email: P.Moles@ed.ac.uk |
Course secretary |
Ms Natalie Honeyman
Tel: (0131 6)51 1458
Email: Natalie.Honeyman@ed.ac.uk |
|
copyright 2010 The University of Edinburgh -
1 September 2010 5:45 am
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