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


group assignment (20%), mid-semester test (30%), final exam (50%)

Faculty/department permission required?


Unit of study rules


FINC2012 or FINC2002



Additional Information

Knowledge of calculus, regression, probability theory and random distributions are helpful for this subject

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.