ØABED4200 Derivatives Course description

All reference aids are allowed while working on the project description as long as the rules for source references are followed.

Supervised exam: No aids are permitted.

ØABED3500 or ØABED4600 Investments

Grade scale A-F

An internal and an external examiner will grade the project description and the written exam.

A selection of at least 25% of the exam papers will be assessed by two examiners. The grades awarded to exam papers assessed by the external and internal examiner will be used to determine the level of all exam papers.

Aagoth Storvik

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.

The goal of the assignments are to help the students reflect over own independent work on practical problems in valuing and trading derivatives contracts and to use valuation models such as Cost of carry for futures and Binominal and Black-Scholes for options independently.

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.

The following aids are permitted:

• Calculator (see regulations for the use of calculators in the programme description)
• One dictionary (either first language-English/English-first language or English/English)

Grade scale A-F

The exam papers are assessed by one internal and one external examiner.

At least 25% of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

Students who have the subject ØABED3800 Derivatives in their bachelor's degree are not allowed to take this course.