BE332-6-FY-KS:
Options and Futures
2023/24
Essex Business School
Kaplan Singapore
Full Year
Undergraduate: Level 6
Current
Thursday 05 October 2023
Friday 28 June 2024
15
04 October 2022
Requisites for this module
(none)
(none)
(none)
(none)
BE331, BE631
BSC N420JS Accounting and Finance,
BSC N420NS Accounting and Finance,
BSC N390JS Banking and Finance,
BSC N390NS Banking and Finance
The primary purpose of this module is to provide the student with the basic knowledge about options and futures, with five weeks allocated to each. For both halves of the module, we start off by defining the respective derivative contract, continue on to examining in detail how it is traded and then delve into its pricing and risk management/trading applications. The module is highly quantitative, with a total of nine weekly classes intended to go over a large quantity of numerical problems.
The primary aim of this module is to give the students a good basic understanding of option, forward and futures contracts. Derivatives’ payoffs, their pricing and their uses in hedging will be main focus.
On successful completion of the module, students will be able to:
• Describe futures and options contracts with precision
• Place within the context of credit risk mitigation the mechanics of how futures and options markets operate
• Identify an appropriate futures or options-based strategy to fulfil an investment objective
• Determine equilibrium futures contract prices
• Use binomial trees and the Black-Scholes model to price options.
• Quantify and manage portfolio risk exposure using option deltas.
Skills for Your Professional Life (Transferable Skills)
UAnalytical Domain
Academic and Cognitive Skills
A1 Synthesis and bringing together concepts and ideas
A3 Evaluation of evidence
A4 Creative problem solving
Data Analysis Skills
D1 Analysing quantitative data
D3 Analysing financial data
D4 Analysing Academic literature
Finance Skills
F1 Understand concepts and methodologies used to explain the behaviour of different financial market participants and the functioning of different financial market types F2 Apply key concepts and methodologies used to explain the behaviour of different financial market participants and the functioning of different financial market types
The module material will be delivered in the following way:
* 2 hours of lectures per week;
* Weekly workshops.
This module does not appear to have a published bibliography for this year.
Assessment items, weightings and deadlines
| Coursework / exam |
Description |
Deadline |
Coursework weighting |
| Exam |
Reassessment Main exam: Remote, Open Book, 120 minutes during September (Reassessment Period)
|
Exam format definitions
- Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
- In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
- In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
- In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary,
for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.
Your department will provide further guidance before your exams.
Overall assessment
Reassessment
Module supervisor and teaching staff
Dr Cheng Yan, email: cheng.yan@essex.ac.uk.
ebsugcol@essex.ac.uk
No
No
No
No external examiner information available for this module.
Available via Moodle
No lecture recording information available for this module.
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