BFF3751 Derivatives 1
Faculty of Business and Economics
BFF3751 Derivatives 1 is a level 3, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2021 in Semester 1 and Semester 2 at Caulfield. It needs (BFF1001, BFW1001 or BFB1001) and (BFC2140, BFF2140, BFW2140, BFX2140 or BFB2140) and unlocks 6 units.
- Credit points
- 6
- Offered in 2021
- Semester 1, Semester 2
- Caulfield
- Assessment
- Exam 50%
- and 1 other task
- Workload
- 144 hours
- per semester
This is the 2021 handbook entry. See the 2027 entry.
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Requisites
Before BFF3751
Prerequisites
Pass these before you enrol.
Prohibitions
You can't enrol if you have passed any of these.
After BFF3751
6 units list BFF3751 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 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 pricing of these instruments.
Offerings in 2021
| Teaching period | Campus | Mode |
|---|---|---|
| First semester | Caulfield | On campus |
| Second semester | Caulfield | 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 approachPeer assisted 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.
Learning resources
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
BFF3751 is part of 2 areas of study in the 2021 handbook.
Contacts
- Chief Examiners
- Associate Professor Jin Yu
- Professor Phil Gray
Common questions
What are the prerequisites for BFF3751?
You need (BFF1001, BFW1001 or BFB1001) and (BFC2140, BFF2140, BFW2140, BFX2140 or BFB2140) before you enrol. Enrolment rules also apply.
What can I take after BFF3751?
BFF3751 is a prerequisite or corequisite for 6 units, including BFC3140, BFC3240, BFC3340, BFC3341, BFC3540 and BFW3540.
When is BFF3751 offered?
In 2021, BFF3751 runs in Semester 1 and Semester 2 at Caulfield.
How much work is BFF3751?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does BFF3751 have an exam?
Yes. The exam is worth 50% of the final mark, alongside 1 other task.
Which majors and minors include BFF3751?
BFF3751 is part of Banking and finance; and Financial econometrics.