Module Details

BE332-6-AU-CO: Options And Futures

Year: 2017/18
Department: Essex Business School
Essex credit: 15
ECTS credit: 7.5
Available to Study Abroad / Exchange Students: Yes
Full Year Module Available to Study Abroad / Exchange Students for a Single Term: No
Outside Option: Yes
Pre-requisites: BE311 and BE313

Supervisor: Mr Sina Erdal
Teaching Staff: Sina Erdal &
Contact details:

Module is taught during the following terms
Autumn Spring Summer

Module Description

This is an introductory module on options and futures, with five weeks allocated to each. For both halves of the module, we start off by defining the respective derivative contract, continue on to examining in detail how it is traded and then delve into its pricing and risk management/trading applications. The module is highly quantitative, with a total of nine weekly classes intended to go over a large quantity of numerical problems.

Learning Aims and Outcomes

Upon successful completion of the module, students should be able to:

1. Describe futures and options contracts with precision.
2. Place within the context of credit risk mitigation the mechanics of how futures and options markets operate.
3. Identify an appropriate futures or options-based strategy to fulfill an investment objective.
4. Determine equilibrium futures contract prices.
5. Use binomial trees and the Black-Scholes model to price options.
6. Quantify exposure using option deltas, manage portfolio risk based using delta.

Learning and Teaching Methods

The module material will be delivered in the following way;
2 hours of lectures per week;
Weekly workshops.


30 per cent Coursework Mark, 70 per cent Exam Mark


Assessment is via summer exam (70%) and coursework (30%) in the form of an in-class test. The in-class test will be held in the last week of the autumn term.

Exam Duration and Period

2:00 during Summer Examination period.


  • All reading lists are available here: (Essex login required).

Further information

External Examiner Information

  • Name: Dr Apostolos Kourtis
    Institution: The University of East Anglia
    Academic Role: Senior Lecturer in Finance