BFC2751 Derivatives 1
Faculty of Business and Economics
BFC2751 Derivatives 1 is a level 2, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2022 in Semester 1 and Semester 2 at Clayton. It needs BFW2140, BFB2140, BFX2140, BFC2140 or BFF2140 and unlocks 7 units.
- Credit points
- 6
- Offered in 2022
- Semester 1, Semester 2
- Clayton
- Assessment
- Exam 50%
- and 1 other task
- Workload
- 144 hours
- per semester
This is the 2022 handbook entry. See the 2027 entry.
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Requisites
Before BFC2751
Prohibitions
You can't enrol if you have passed any of these.
After BFC2751
7 units list BFC2751 as a prerequisite or corequisite.
Enrolment rules
To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 Higher level. You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study. You should self-assess your maths competency prior to enrolling in this unit.
Equivalent units
The same content under another code. Only one of them counts.
Overview
This unit examines the institutional features of futures and options markets, the use of futures, options and other derivatives in arbitraging, trading and hedging, and prices of these instruments.
Offerings in 2022
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Clayton | On campus |
| Second semester | Clayton | On campus |
Assessment
- Within semester assessment50%
- ExaminationThreshold hurdle50%
Learning outcomes
When you finish this unit, you should be able to:
- 1
discuss the operations of derivatives markets
- 2
evaluate the options and futures markets for hedging and trading purposes
- 3
demonstrate how to price and value standards futures and options contracts and other derivatives
- 4
implement trading strategies and measure positions.
Workload and teaching
- Tutorials12 hours
- Lectures24 hours
- Teaching approachProblem-based learning
- Teaching approachActive learning
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.
This unit includes problem-based learning approaches, where students engage in research, integrate theory and practice and apply knowledge and skills to develop viable solutions in response to a problem or set of problems.
This unit engages students in actively applying their knowledge, skills and attributes in interactive, collaborative and reflective activities.
Learning resources
Required resources
Hull, J. C., (2018). Options, futures and other derivatives (Global edition 9th). Pearson Education.
Technology resources
The only Faculty approved calculators permitted in tests and examinations for all Australian campuses and locations is the HP10bII+ or Casio FX82 (any suffix).
Where it fits
BFC2751 is part of 2 areas of study in the 2022 handbook.
Contacts
- Chief Examiners
- Dr Ying Liang
- Dr Zhe An
Common questions
What are the prerequisites for BFC2751?
You need BFW2140, BFB2140, BFX2140, BFC2140 or BFF2140 before you enrol. Enrolment rules also apply.
What can I take after BFC2751?
BFC2751 is a prerequisite or corequisite for 7 units, including BFC3140, BFC3240, BFC3340, BFC3341, BFC3540 and BFF5340.
When is BFC2751 offered?
In 2022, BFC2751 runs in Semester 1 and Semester 2 at Clayton.
How much work is BFC2751?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFC2751 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 1 other task.
Which majors and minors include BFC2751?
BFC2751 is part of Finance.