Derivative Securities (FINC3012)


Options, futures and swaps are derivatives of underlying securities such as commodities, equities and bonds. These types of securities are increasingly used to manage risk exposure and as a relatively low-cost-way of taking a position in a security or portfolio. They are also being used as part of senior management compensation as a way of attempting to align the interests of shareholders with that of management. This unit is designed to provide an introduction to this important area of finance without requiring too high a level of mathematical sophistication. However, strong quantitative skills are an advantage in this subject.

Our courses that offer this unit of study

Further unit of study information


1x 2hr lecture and 1x 1hr tutorial per week


Applied project: group assignment (15%), assignment presentation (5%), mid-semester test (30%), and final examination (50%)

Faculty/department permission required?


Unit of study rules

Prerequisites and assumed knowledge

FINC2012 or FINC2002



Study this unit outside a degree

Non-award/non-degree study

If you wish to undertake one or more units of study (subjects) for your own interest but not towards a degree, you may enrol in single units as a non-award student.

Cross-institutional study

If you are from another Australian tertiary institution you may be permitted to underake cross-institutional study in one or more units of study at the University of Sydney.