ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title Derivatives and Alternative Investments
Code MGTK757
Coordinator Mr JP Laws
Finance and Accounting
J.Laws@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2022-23 Level 7 FHEQ Whole Session 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours           24

8

32
Timetable (if known)              
Private Study 118
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Individual written report Reassessment Opportunity: new assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes  -2000 words    50       
Individual written report Reassessment Opportunity: new assignment with the same brief. Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes  -2000 words    50       

Aims

The module aims to:

Provide students with knowledge and understanding of the nature and operation of derivative markets and derivative instruments, including forwards, futures, options, swaps and credit derivatives, and how they can be used in managing financial risk;p

Provide students with a working knowledge of the nature of alternative investments, including hedge funds, private equity, real estate, and commodities and develop an understanding of the characteristics of the markets in which they are traded.


Learning Outcomes

(LE1) Flexible and adaptable.
Students will understand that the finance sector is fast-changing and influenced significantly by worldwide events as well as technological advancements. The module will equip students with techniques, knowledge and confidence required to face these challenges through the use of varied learning and assessment methods used, such as the use of real world data.

(LE2) A team player.
Some assessed work will require students to work in virtual groups and manage the interaction and relationships with other group members. In doing so, they will gain experience in negotiation, persuasion, influencing and managing conflict. This will be assessed as part of group assignments.

(LE3) Internationally aware.
Our teaching and research community is drawn from around the world and our students are exposed to business ideas and cultures from beyond the UK. Furthermore, online delivery will enable a collaborative approach with other practitioners from diverse international backgrounds, enabling a richer experience.

(LO1) Students will be able to demonstrate a comprehensive knowledge, understanding and critical awareness of the nature and use of derivative securities in complex scenarios.

(LO2) Students will be able to demonstrate a comprehensive knowledge, understanding and critical awareness of the nature of derivative markets.

(LO3) Students will able to demonstrate a comprehensive knowledge and understanding of professional practice related to alternative investments.

(LO4) Students will be able to apply knowledge and understanding of applied techniques and methods to evaluate alternative investments creatively.

(LO5) Students will be able to demonstrate a conceptual understanding of the principles underlying the investment in alternative assets at the forefront of current practice.

(LRE1) A problem solver.
Students will be challenged to think critically by being asked to provide solutions to a real world hedging scenario an organisation would face. They will do this by gathering and synthesising information, analysing alternative perspectives and options and presenting a considered opinion or course of action in their assessment.

(LRE2) Numerate.
Students will be required to demonstrate a good level of numerical application across the syllabus through the assessments set.

(LRE3) Commercially aware.
The subject matter will be delivered by reference to real-world events. Students will be required to demonstrate the implications and impacts of these events on these subject areas. Students will also be required to share their commercial experiences in group tasks, where appropriate.

(LRE4) Organised and able to work under pressure.
Students will be expected to plan scheduled work and meet assessment deadlines. This will be evident in the students’ independent management of their assignments and assessment deadlines.

(LRE5) An excellent verbal and written communicator.
Students will have opportunities to develop written and oral communication skills through virtual group discussions, online presentations and coursework.

(LRE6) IT literate.
Students will have opportunities to improve their IT skills. Students will demonstrate skills in the use of software applications including word processing, visual presentations, databases, spreadsheets and using the internet for information searches in the course of researching and presenting coursework. The nature of the module in terms of online delivery will enable students to develop skills in using a virtual learning/communications environment.

(LRE7) A lifelong learner.
The module will embed key finance skills and an awareness which will continue to grow as students are exposed to future experiences in their careers.


Teaching and Learning Strategies

The module will be delivered over an 8-week period, primarily through a series of weekly e-lectures. These will be supported by individual online tasks and discussion boards, which will be used to develop and apply learning. These will be moderated by the module instructor. Students will also be directed to key academic readings, practitioner readings, media clips and newspaper articles to help develop real-world understanding and application of subject matter.

Unscheduled Directed Student Hours: 24 hours
Description: The e-lectures will equate to 3 hours/week over 8 weeks, undertaken asynchronously.
Attendance Recorded: Yes – tracked via the learning platform.

Additionally, four scheduled synchronous seminar will be delivered (if there are issues with time zones another seminar will be provided). The synchronous sessions will utilise real-time market data taken from Bloomberg or Thompson Ikon.

Scheduled Directed Student Hours: 8 hours
Descriptio n: The scheduled seminars will equate to 2 hours/fortnight undertaken synchronously. The date and time of the seminars will be confirmed at the start of the module.
Attendance Recorded: Yes – tracked via the learning platform.

Self-Directed Learning Hours: 118 hours
Description: This will involve directed and independent reading, independent research, and preparation for assessment.


Syllabus

 

Derivatives:
Types of derivative instruments and their characteristics.

Forward markets and instruments.

Futures markets and instruments.

Options markets and instruments.

Swaps markets and instruments.

Credit derivatives markets and instruments.

Alternative Investments:
Types of alternative investments and their characteristics.

Real estate.

Private equity/venture capital.

Hedge funds.


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.