Financial Derivatives (932N1)

15 credits, Level 7 (Masters)

Spring teaching

This module provides up-to-date coverage of the main aspects of financial derivatives, covering an overview of the mechanics of futures markets, the hedging strategies using futures, the determination of forward and futures prices, and the mechanics of options markets.

Applications of no arbitrage and risk-neutral pricing are discussed in detail and are applied to a number of different asset markets. The module also presents the corner stone of financial derivatives, namely the Black-Scholes-Merton Model and provides an in-depth discussion of the applications of implied volatility in financial markets.

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 33 hours of contact time and about 117 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2025/26. However, there may be changes to these modules in response to feedback, staff availability, student demand or updates to our curriculum.

We’ll make sure to let you know of any material changes to modules at the earliest opportunity.