ØABED4200 Derivatives Course description

The market for financial derivatives is one of the biggest in the world. The most important derivative securities are forwards, futures, options, and swaps. Derivatives are central instruments for companies when they deal with risk. This subject focuses on how companies and other institutions can reduce risk by using derivatives contracts. 

Language of instruction is English.

Examination support material is permitted.

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student 

• has advanced knowledge of markets, trading and valuation of forwards, futures, options and swap contracts
• has in-dept knowledge about the theories behind valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options
• has in-dept knowledge about central risk measures such as delta, gamma, vega, theta and rho
• can analyze new problems using valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options

Skills

The student can

• analyze existing theories and methods in derivatives pricing
•  work independently on practical problems in valuing and trading derivatives contracts.
• use valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options independently

General competence

The student can

• contribute to the development and innovation of the use of derivatives contracts
• communicate extensive and independent work in the use of derivatives contracts

The course is taught in lectures.

The teaching is coordinated with ØABED3800.

The following coursework requirements must have been approved in order for the student to take the exam:

• Coursework 1: Futures
• Coursework 2: Swaps
• Coursework 3: Options 1
• Coursework 4: Options 2
• Coursework 5: Futures, Swaps and Options

All of the coursework requirements are submissions of approximately 2-3 pages, written individually. 

All required coursework must be completed and approved by the given deadline in order for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by the given deadline.

The exam in the course is a supervised exam of 4 hours.

After completing the course, the student is expected to have achieved the following learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student

• has acquired in-depth knowledge of and insight into the field of education and development in the South, and how conceptions of sustainable development are manifest in the South
• has an overview of recent research-based knowledge of education discourse and the production of knowledge from both a North and a South perspective
• has broad knowledge of international perspectives and discussions concerning comparative and international education

Skills

The student

• is capable of explaining the role of education in societies in the South characterised by socio-economic, cultural, epistemological and ethnic diversity
• is capable of comparing and critically assessing theories and methods used to study education, culture and sustainable development
• is capable of analysing recent research on connections between education, gender, globalisation, culture and the production of knowledge in the Global South

General competence

The student:

• has extensive knowledge of how to assess how recent research on education and development is relevant to work on the education sector in the Global South
• is capable of explaining and problematising relevant theory in the research field
• is capable of using and disseminating new knowledge and academic issues relating to education in the context of the South

The following required coursework must be approved before the student can take the exam:

• The student must give a presentation lasting 15-30 minutes (individually or as part of a group) of an article, chapter in a book etc. to fellow students during the course.
• 80 % attendance requirement (see the programme description for more information)

The purpose of the oral presentation is to encourage students to engage in more oral activity and improve their oral presentation skills, and to present the academic content to fellow students and the lecturer(s) in an organised and effective manner. The oral presentation is intended to help the students to acquire the skills specified in the learning outcomes for the course.

The course is assessed on the basis of an individual written home exam over seven days, with a scope of 3,500 words +/- 10%.

Resit/rescheduled exam:

Resit/rescheduled exam is organised in the same way as the ordinary exam.

Letter grades ranging from A to F are used, with A being the highest grade and E the poorest pass grade, and F being a fail grade.