Financial Derivatives
Learning outcomes and pass attainment level:
1. Compare the features of different types of Derivative Contracts including forwards, futures, options and Swaps.
2. Assess the functioning of the markets for the different types of Derivative Contracts.
3. Evaluate the price and value of different financial derivatives using the No Arbitrage Principle.
4. Estimate the Price and Value of different types of Derivative Contracts using financial theory and mathematical models.
General guidance
The assessment for this unit is coursework assignment (80%).
This is an individual assessment (80% weightage). Whilst there is no objection to you discussing the content of this assignment with your peers, your final submission must be completely your own work. Plagiarism and copying will not be tolerated and may lead to subsequent penalties being imposed. This is an individual assignment and all calculations, analysis and narrative submitted must be your own work.
The assignment will require a considerable personal investment of time and effort.
Structure of the assignment
The assignment requires you to respond to three different requirements in a report format. The total word count (excluding numerical calculations and analysis to be provided in appendix) is 2000 words (± 10%). When determining the amount of effort and words (though suggested for each) for each section of the assignment it will be advisable to examine the weighting of the marks allocated to requirements. The recommended font size is 12 (Arial or Times New Roman) and round numbers to two decimal points. Make sure you cover all the requirements in adequate detail.
