125710

Derivatives and Risk Management

This course considers the roles of financial risk management in reducing risk and/or increasing returns in an organisation. Students will be exposed to derivatives and risk management from both theoretical and empirical perspectives.

Course code

Qualifications are made up of courses. Some universities call these papers. Each course is numbered using six digits.

125710

Level

The fourth number of the course code shows the level of the course. For example, in course 219206, the fourth number is a 2, so it is a 200-level course (usually studied in the second year of full-time study).

700-level

Credits

Each course is worth a number of credits. You combine courses (credits) to meet the total number of credits needed for your qualification.

15

Subject

Finance

Course planning information

Course notes

Students must achieve at least 45% in the final examination to be eligible to pass the course.

Prerequisite courses

Complete first
125700 or 125330 or Appraisal Required

You need to complete the above course or courses before moving onto this one.

Corequisite courses

Complete at the same time

You need to complete the corequisite course or courses listed above at the same time as, or before, doing this one.

Restrictions

Similar content
125781

You cannot enrol in this course if you have passed (or are enrolled in) any of the course(s) above as these courses have similar content or content at a higher level.

General progression requirements

You may enrol in a postgraduate course (that is a 700-, 800- or 900-level course) if you meet the prerequisites for that course and have been admitted to a qualification which lists the course in its schedule.

Learning outcomes

What you will learn. Knowledge, skills and attitudes you’ll be able to show as a result of successfully finishing this course.

  • 1 Design and implement advanced forward, futures, and options hedging strategies to manage financial risk.
  • 2 Evaluate the pricing of derivatives and appraise their implications in hedging risk.
  • 3 Articulate the principles of credit risk, Value-at-Risk and strategies used by firms to manage such risks.

Learning outcomes can change before the start of the semester you are studying the course in.

Assessments

Assessment Learning outcomes assessed Weighting
Test 1 2 20%
Written Assignment 1 2 3 30%
Exam (centrally scheduled) 1 2 3 50%

Assessment weightings can change up to the start of the semester the course is delivered in.

You may need to take more assessments depending on where, how, and when you choose to take this course.

Explanation of assessment types

Computer programmes
Computer animation and screening, design, programming, models and other computer work.
Creative compositions
Animations, films, models, textiles, websites, and other compositions.
Exam College or GRS-based (not centrally scheduled)
An exam scheduled by a college or the Graduate Research School (GRS). The exam could be online, oral, field, practical skills, written exams or another format.
Exam (centrally scheduled)
An exam scheduled by Assessment Services (centrally) – you’ll usually be told when and where the exam is through the student portal.
Oral or performance or presentation
Debates, demonstrations, exhibitions, interviews, oral proposals, role play, speech and other performances or presentations.
Participation
You may be assessed on your participation in activities such as online fora, laboratories, debates, tutorials, exercises, seminars, and so on.
Portfolio
Creative, learning, online, narrative, photographic, written, and other portfolios.
Practical or placement
Field trips, field work, placements, seminars, workshops, voluntary work, and other activities.
Simulation
Technology-based or experience-based simulations.
Test
Laboratory, online, multi-choice, short answer, spoken, and other tests – arranged by the school.
Written assignment
Essays, group or individual projects, proposals, reports, reviews, writing exercises, and other written assignments.

Textbooks needed

There are no set texts for this course.