ACC3004 : Derivative Markets
- Offered for Year: 2025/26
- Available for Study Abroad and Exchange students, subject to proof of pre-requisite knowledge.
- Module Leader(s): Dr Periklis Boumparis
- Owning School: Newcastle University Business School
- Teaching Location: Newcastle City Campus
Semesters
Your programme is made up of credits, the total differs on programme to programme.
| Semester 1 Credit Value: | 10 |
| Semester 2 Credit Value: | 10 |
| ECTS Credits: | 10.0 |
| European Credit Transfer System | |
Aims
The module aims to develop student understanding of the uses and valuation of financial derivatives and to examine issues concerning the management of risk for financial institutions dealing in financial derivatives. It will provide those with the intention to advise and/or deal in derivatives with the knowledge and skills required for such a job role.
Outline Of Syllabus
1. An Introduction to Derivative Markets
2. Underlying Assets
3. Exchange Traded Futures and Options
4. Clearing
5. Delivery and Settlement
6. Investment Selection and Administration
7. Trading, hedging and Investment Strategies
8. Special regulatory Requirements
9. Valuing Forwards and Futures
10. Valuing Swaps
11. Black-Scholes Option Pricing Model
12. Binomial Option Pricing Model
Teaching Methods
Teaching Activities
| Category | Activity | Number | Length | Student Hours | Comment |
|---|---|---|---|---|---|
| Scheduled Learning And Teaching Activities | Lecture | 1 | 1:00 | 1:00 | Guest Lecture |
| Guided Independent Study | Assessment preparation and completion | 1 | 65:00 | 65:00 | N/A |
| Scheduled Learning And Teaching Activities | Lecture | 12 | 2:00 | 24:00 | pip lectures |
| Scheduled Learning And Teaching Activities | Small group teaching | 4 | 2:00 | 8:00 | pip seminars |
| Guided Independent Study | Independent study | 1 | 99:00 | 99:00 | N/A |
| Scheduled Learning And Teaching Activities | Scheduled on-line contact time | 3 | 1:00 | 3:00 | 1 for pre-assessment clinic, 2 for drop-in (1 per semester) |
| Total | 200:00 |
Teaching Rationale And Relationship
1) Lectures serve to outline the module and provide an introduction to fundamental concepts and techniques.
2) Seminars offer students the opportunity to engage in discussions about readings and tackle problem questions within a small group setting.
3) Scheduled online contact and pre-assessment clinics create a platform for students to ask questions, participate in general discussions about the module and enhance their preparation for the examination.
4) Guided Independent Study allows students to deepen their understanding of course material, develop critical thinking skills, and take ownership of their learning by engaging with recommended resources and applying concepts independently.
Assessment Methods
The format of resits will be determined by the Board of Examiners
Exams
| Description | Length | Semester | When Set | Percentage | Comment |
|---|---|---|---|---|---|
| Written Examination | 180 | 2 | A | 100 | N/A |
Formative Assessments
Formative Assessment is an assessment which develops your skills in being assessed, allows for you to receive feedback, and prepares you for being assessed. However, it does not count to your final mark.
| Description | Semester | When Set | Comment |
|---|---|---|---|
| Written Examination | 1 | M | Practice questions provided |
| Written Examination | 2 | M | Practice questions provided |
Assessment Rationale And Relationship
One three-hour examination will be set to test the understanding of the material covered in both quantitative and qualitative questions. The student shall be tested based on the understanding of the material theoretically as well as the ability to apply that to scenarios in practice.
Reading Lists
Timetable
- Timetable Website: www.ncl.ac.uk/timetable/
- ACC3004's Timetable