BFC2751 HD (86) Derivatives Semester Notes 2026

Description

BFC2751 Derivatives — Complete Subject Notes (Semester 1, 2026) | HD, 86 Complete notes for BFC2751 Derivatives, covering every teaching week plus a bonus section on exotic derivatives. Written across Semester 1 2026 and used to achieve a High Distinction (86). These aren't a transcript of class. Every concept is rewritten in plain language and every formula is followed by a worked example with the arithmetic shown line by line, so you can see where each number comes from. 114 pages with a contents page, a week-by-week overview table and page numbers throughout — each week starts on its own page, so you can jump straight to what you need. Over 150 diagrams, payoff charts and binomial trees are embedded inline. Topics covered Week 1 — Introduction to forwards and futures Week 2 — Hedging with forwards and futures Week 3 — Valuation of forwards and futures contracts Week 4 — Option contracts Week 5 — Hedging with options Week 6 — Mid-semester test (no lecture content) Week 7 — Option trading strategies Week 8 — Pricing options: Black-Scholes, bounds and put-call parity Week 9 — Binomial option pricing: replication and delta hedging Week 10 — Binomial option pricing II: risk-neutral valuation Week 11 — Hedging parameters (the Greeks) Bonus — Exotic and path-dependent derivatives Useful whether you're cramming for the exam, filling in weeks you missed, or the binomial and Black-Scholes material never quite landed. Delivered as a single PDF.