Subject: FNCE30007 Derivative Securities
3 Comments on FNCE30007 Derivative Securities
Semester taken: 2017, S1 This is a level 3 core subject for finance majors, so most students taking this are commerce students who have it as a compulsory subject. Teaching Federico was a good lecturer, considering the nature of the subject material. He made it fairly interesting, while refraining from using unnecessary jargon, and spoke in plain English when possible. Could be a little slow at times, but this is necessary, given the abstract nature of the content and how easy it is to get lost. Pragmatic and to the point, with a good understanding of how students relate to the material. Relevance As someone taking the subject with no intention the intention of a career in commerce, I found the information somewhat specific, and questioned whether it would be relevant to anyone not working in a corporate finance career. However, learning how derivative securities relate to other topics in finance provided insight on how those concepts worked in practice. The subject draws upon and reinforces knowledge learned in business finance. Difficulty Among commerce students, this subject has a reputation for being notoriously difficult. This largely stems from how mathematically intensive it is. The maths itself is not difficult, but sometimes involve long equations and many calculations, which makes it easy to make a calculation error. For the exam, an H1 is doable, given the limited scope of questions that can be asked, though you must start practicing early and keeping up with the material, as an understanding of how the mathematics is derived and applied to situations is essential. Get used to punching lots of numbers into a calculator and getting it right, as that's what it comes down to in the end. Other info Overall, a challenging subject, especially for those who aren't so comfortable with numbers/aren't maths inclined. But with practice, questions can be perfected. I.e there's a correct step-by-step method to do each question. If well coordinated, can be made sufficiently relevant and interesting for those doing commerce.
This course is challenging and was hard to grasp the financial concepts initially. However, the support from tutors and lecturer was great. It is good to gain more understanding towards the subject by attending consultation and always ask whenever in doubt.
The first 4 lectures were okay as they were quite similar to Business Finance. But after that, you really need to get your game on. I couldn't fully grasp the concepts when it was first presented in lectures, I had to constantly go back to the recordings. A fair amount of study needs to be done each week to keep up with the tutorials, otherwise you'll not gonna understand anything. Overall, it's a hard subject but the lecturers and tutors are good to compensate it.