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Module Specifications..

Current Academic Year 2023 - 2024

Please note that this information is subject to change.

Module Title Financial Instruments and Strategies
Module Code EF4144
School DCUBS
Module Co-ordinatorSemester 1: Sandeep Keshava Rao
Semester 2: Anand Kumar
Autumn: Sandeep Keshava Rao
Module TeachersMichael Dowling
Shaen Corbet
Cathal Guiomard
Sandeep Keshava Rao
Anand Kumar
NFQ level 8 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None

This module aims to develop students understanding of some of the main uses and applications of financial instruments and strategies in the process of managing the main needs of borrowers, investors and financial intermediaries in financial markets.

Learning Outcomes

1. Identify the main types of financial risks faced by corporations and financial institutions.
2. Assess some of the main strategies that may be used to manage the various types of financial risks.
3. Value some simple financial instruments and explain the process of how more complex financial products may be valued.
4. Critique recently developed metrics and concepts in the areas of financial engineering and risk management
5. Identify the potential risks and limitations associated with valuation models being used

Workload Full-time hours per semester
Type Hours Description
Assignment Completion15Answer assigned short answer questions and problems
Independent Study40Reading references (textbook and lecture notes) for weekly lectures. This should be done ahead of weekly lectures, to maximize in-class learning and allow the students to actively debate the material presented in class, and after the lectures, to solidify t
Lecture24No Description
Seminars6Participative attendance of seminars offered by industry experts and/or academics
Independent Study40Exam preparation
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

No-arbitrage pricing
Replication of financial and non-financial payoffs, No-Arbitrage and Risk Neutral Valuation

Forwards and futures
Forward rate agreements (FRAs); synthetic agreements for forward exchange (SAFEs); currency forwards and futures; short-term interest rate futures; T-Bill futures; market timing and duration; stock index futures; stock market timing with futures

Currency and interest rate swaps; managing interest rate risk and currency risk with swaps

Hedging and volatility: delta hedging; option spreads and stock options: synthetic securities, bull and bear spreads, straddle, strangle, butterfly and condor, stock options; interest rate options (including caps, floors, collars, swaptions); foreign currency options; future options; portfolio insurance

Managing risk
Market and credit risk in financial and non financial firms; defining and measuring market and credit risk exposures; risk reduction vs. yield enhancement techniques; buying and selling convexity; structured finance and securitization

Assessment Breakdown
Continuous Assessment100% Examination Weight0%
Course Work Breakdown
TypeDescription% of totalAssessment Date
AssignmentAssignment100%Sem 1 End
Reassessment Requirement Type
Resit arrangements are explained by the following categories;
1 = A resit is available for all components of the module
2 = No resit is available for 100% continuous assessment module
3 = No resit is available for the continuous assessment component
This module is category 1
Indicative Reading List

  • John Hall: 2015, Options, futures, and other derivatives, 6th and later, 1 - 8, Pearson,
Other Resources

Programme or List of Programmes
AMPSBSc in Aviation Management

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