School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Derivative Securities
  • Unit Code

    ECF6315
  • Year

    2024
  • Enrolment Period

    1
  • Version

    1
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Dr Thach PHAM

Description

Students will learn the theoretical aspects of derivative securities such as financial futures, forwards, swaps and options contracts. The unit also covers the pricing and valuation of these securities. Students will develop knowledge and skills required to apply these valuations practically, to devise hedging strategies for portfolio risk management. The unit also incorporates credit derivatives, cryptocurrency and blockchain technology.

Prerequisite Rule

Students must have passed ECF6110 and ECF6102

Learning Outcomes

On completion of this unit students should be able to:

  1. Evaluate the theoretical and empirical knowledge of financial derivative securities to price diverse financial contracts.
  2. Apply pricing and valuations to the different types of derivative securities to make informed investment decisions.
  3. Formulate hedging strategies using financial derivative securities to manage portfolio risk.

Unit Content

  1. Introduction to Derivatives.
  2. Forward & Futures markets, contracts and valuation.
  3. Swap markets and contracts.
  4. Valuation of Swap contracts.
  5. Option markets and contracts.
  6. Valuation of Option contracts: Binomial.
  7. Valuation of Option contracts: Black-Scholes-Merton Model.
  8. Option trading strategies and the Greek letters.
  9. Credit Derivatives markets and instruments.
  10. Risk management using derivatives.
  11. Cryptocurrency and blockchain technology

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

ON CAMPUS
TypeDescriptionValue
Case StudyBusiness case study30%
ProjectProject plan 30%
ProjectProject presentation 40%
ONLINE
TypeDescriptionValue
Case StudyBusiness case study30%
ProjectProject plan 30%
ProjectProject presentation 40%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Assessment

Students please note: The marks and grades received by students on assessments may be subject to further moderation. Informal vivas may be conducted as part of an assessment task, where staff require further information to confirm the learning outcomes have been met. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

Academic Integrity

Integrity is a core value at Edith Cowan University, and it is expected that ECU students complete their assessment tasks honestly and with acknowledgement of other people's work as well as any generative artificial intelligence tools that may have been used. This means that assessment tasks must be completed individually (unless it is an authorised group assessment task) and any sources used must be referenced.

Breaches of academic integrity can include:

Plagiarism

Copying the words, ideas or creative works of other people or generative artificial intelligence tools, without referencing in accordance with stated University requirements. Students need to seek approval from the Unit Coordinator within the first week of study if they intend to use some of their previous work in an assessment task (self-plagiarism).

Unauthorised collaboration (collusion)

Working with other students and submitting the same or substantially similar work or portions of work when an individual submission was required. This includes students knowingly providing others with copies of their own work to use in the same or similar assessment task(s).

Contract cheating

Organising a friend, a family member, another student or an external person or organisation (e.g. through an online website) to complete or substantially edit or refine part or all of an assessment task(s) on their behalf.

Cheating in an exam

Using or having access to unauthorised materials in an exam or test.

Serious outcomes may be imposed if a student is found to have committed one of these breaches, up to and including expulsion from the University for repeated or serious acts.

ECU's policies and more information about academic integrity can be found on the student academic integrity website.

All commencing ECU students are required to complete the Academic Integrity Module.

Assessment Extension

In some circumstances, Students may apply to their Unit Coordinator to extend the due date of their Assessment Task(s) in accordance with ECU's Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000001386.

Special Consideration

Students may apply for Special Consideration in respect of a final unit grade, where their achievement was affected by Exceptional Circumstances as set out in the Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000003318.

ECF6315|1|1

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Derivative Securities
  • Unit Code

    ECF6315
  • Year

    2024
  • Enrolment Period

    2
  • Version

    1
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Dr Thach PHAM

Description

Students will learn the theoretical aspects of derivative securities such as financial futures, forwards, swaps and options contracts. The unit also covers the pricing and valuation of these securities. Students will develop knowledge and skills required to apply these valuations practically, to devise hedging strategies for portfolio risk management. The unit also incorporates credit derivatives, cryptocurrency and blockchain technology.

Prerequisite Rule

Students must have passed ECF6110 and ECF6102

Learning Outcomes

On completion of this unit students should be able to:

  1. Evaluate the theoretical and empirical knowledge of financial derivative securities to price diverse financial contracts.
  2. Apply pricing and valuations to the different types of derivative securities to make informed investment decisions.
  3. Formulate hedging strategies using financial derivative securities to manage portfolio risk.

Unit Content

  1. Introduction to Derivatives.
  2. Forward & Futures markets, contracts and valuation.
  3. Swap markets and contracts.
  4. Valuation of Swap contracts.
  5. Option markets and contracts.
  6. Valuation of Option contracts: Binomial.
  7. Valuation of Option contracts: Black-Scholes-Merton Model.
  8. Option trading strategies and the Greek letters.
  9. Credit Derivatives markets and instruments.
  10. Risk management using derivatives.
  11. Cryptocurrency and blockchain technology

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

ON CAMPUS
TypeDescriptionValue
Case StudyBusiness case study30%
ProjectProject plan 30%
ProjectProject presentation 40%
ONLINE
TypeDescriptionValue
Case StudyBusiness case study30%
ProjectProject plan 30%
ProjectProject presentation 40%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Assessment

Students please note: The marks and grades received by students on assessments may be subject to further moderation. Informal vivas may be conducted as part of an assessment task, where staff require further information to confirm the learning outcomes have been met. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

Academic Integrity

Integrity is a core value at Edith Cowan University, and it is expected that ECU students complete their assessment tasks honestly and with acknowledgement of other people's work as well as any generative artificial intelligence tools that may have been used. This means that assessment tasks must be completed individually (unless it is an authorised group assessment task) and any sources used must be referenced.

Breaches of academic integrity can include:

Plagiarism

Copying the words, ideas or creative works of other people or generative artificial intelligence tools, without referencing in accordance with stated University requirements. Students need to seek approval from the Unit Coordinator within the first week of study if they intend to use some of their previous work in an assessment task (self-plagiarism).

Unauthorised collaboration (collusion)

Working with other students and submitting the same or substantially similar work or portions of work when an individual submission was required. This includes students knowingly providing others with copies of their own work to use in the same or similar assessment task(s).

Contract cheating

Organising a friend, a family member, another student or an external person or organisation (e.g. through an online website) to complete or substantially edit or refine part or all of an assessment task(s) on their behalf.

Cheating in an exam

Using or having access to unauthorised materials in an exam or test.

Serious outcomes may be imposed if a student is found to have committed one of these breaches, up to and including expulsion from the University for repeated or serious acts.

ECU's policies and more information about academic integrity can be found on the student academic integrity website.

All commencing ECU students are required to complete the Academic Integrity Module.

Assessment Extension

In some circumstances, Students may apply to their Unit Coordinator to extend the due date of their Assessment Task(s) in accordance with ECU's Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000001386.

Special Consideration

Students may apply for Special Consideration in respect of a final unit grade, where their achievement was affected by Exceptional Circumstances as set out in the Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000003318.

ECF6315|1|2