• FNCE3003
  • Derivatives

  • Credits (ECTS): 10
  • Accounting and Finance

Modules are delivered
as part of a programme.
To apply for the
programme,
see the DIT website

Module Description

The Derivatives module principally concerns the valuation and pricing of derivative instruments. This course will teach students how derivatives may be used to manage financial risk. Valuation techniques of actual OTC and exchange traded contracts are developed.

Indicative Syllabus

Introduction to Derivative Markets
Historic and Sociological Perspectives
Spreadsheet, VBA and C++ modelling of financial derivatives
Determination of Forward and Futures Prices
Hedging Strategies using Futures
Yield Curve construction
Interest rate Markets
Fixed Income Instrument Analysis
Swaps
Derivatives Regulation
Spreadsheet modeling of financial derivatives
Mechanics of Option markets
Properties of Options
Trading Strategies involving Options
Binomial Trees
The Black-Scholes Model
Options on Stock Indices, Currencies and Futures.

Total Contact Teaching Hours:80

Pre-requisite Modules

Title Code
Mathematics For Finance & Econ FNCE2004

Please note that the catalogue is provided as a guide to modules in DIT. Not all modules listed will necessarily be offered every year and new modules may also be added. Information subject to change. For detail on specific programmes/modules please contact the relevant School directly.