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FINC71-305: Derivative Products


This advanced finance subject explores the concept of derivatives and their associated pricing, hedging and trading strategies. This includes the rationale underlying derivative market structures and mechanics and the application and pricing of derivative products.

Subject details

FacultyBond Business School
Study areas
  • Business and Commerce
Subject fees
  • Commencing in May 2020: $5,290

Learning outcomes

1. Demonstrate advanced knowledge of the contractual features and properties of forwards, futures, options and credit derivatives on a range of underlying assets and commodities.
2. Apply appropriate models to price forwards, futures, options and credit derivatives and demonstrate an understanding of the mathematical derivations and economic rationale underlying the models.
3. Demonstrate the ability to use option trading strategies.
4. Demonstrate the ability to apply and explain pricing models used for risk.
5. Develop a computational model for calculating measures of asset variance for a real-world derivative application.
6. Write an effective written report to communicate the potential usefulness and impact of chosen computational derivative model.

Enrolment requirements

Requisites: ?


Assumed knowledge:

Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.

Assumed Prior Learning (or equivalent):

Restrictions: ?


Subject outlines

Subject dates

Future offerings not yet planned.