154-0575/01 – Basics of Derivatives and Alternative Investments (BDAI)

Gurantor departmentDepartment of FinanceCredits6
Subject guarantordoc. Ing. Petr Seďa, Ph.D.Subject version guarantordoc. Ing. Petr Seďa, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year2Semestersummer
Study languageEnglish
Year of introduction2024/2025Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
KRE330 doc. Ing. Aleš Kresta, Ph.D.
NOV33 Ing. Martina Novotná, Ph.D.
SED02 doc. Ing. Petr Seďa, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2

Subject aims expressed by acquired skills and competences

The objective of this course is to provide an understanding of basic fundamentals and role of derivatives and alternative investments. After completing the course, the students will be able to: • Discuss the derivative markets structure and the role of standardization, • define the main features and purpose of derivatives, • contrast forward commitments with contingent claims, • define different types of derivative contracts and compare their basic characteristics, • understand positions and determine the payoff of simple option contracts, • describe types and categories of alternative investments, • explain investment characteristics of natural resources, real estate and infrastructure, • define the role and investment attributes of hedge funds and private equity.

Teaching methods

Lectures
Tutorials

Summary

This course is focused on providing the basic concepts and principles of related to the derivative markets and alternative investments. The lectures aim to clarify the main principles and concepts, while the seminars focus on the application of acquired knowledge through case studies, practical exercises, and projects focused on the use of individual assets.

Compulsory literature:

CFA Institute. Derivatives (CFA Institute Investment Series). Hoboken: Wiley, 2021. ISBN 978-1119850588. CHAMBERS, D. R. et al. Alternative Investments. CAIA Level I. 4th ed. Hoboken: Wiley, 2020. ISBN 978-1-119-60415-0. HULL, John. Options, futures, and other derivatives. 11th ed. Upper Saddle River: Pearson, 2021. ISBN 978-0-13-500994-9.

Recommended literature:

BODIE, Zvi, Alex KANE and Alan J. MARCUS. Investments. 12th ed. New York: McGraw Hill, 2021. ISBN 978-1-260-57115-8. CHAMBERS, Donald R., KAZEMI, Hossein B., Keith H. BLACK and CAIA Association. Alternative Investments. An Allocator’s Approach. 4th ed. Hoboken: Wiley, 2021. ISBN 978-1119651680. LAOPODIS, Nikiforos. Understanding investments: theories and strategies. 2nd ed. London: Routledge, Taylor & Francis Group, 2021. ISBN 978-1000074741.

Way of continuous check of knowledge in the course of semester

Credit assessment (case study), elaboration and submission of a project, written exam

E-learning

Other requirements

There are no additional requirements for a student.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Overview of derivative markets and instruments • Structure of derivative markets (exchange-traded, OTC markets), • definition and uses of derivatives, types of positions, • classification of derivative instruments (forward commitments, contingent claims), • derivatives underlyings (equities, fixed-income instruments, currencies, etc.). 2. Forward commitments • Principles and essentials of forward commitments, • forward contracts (basic elements, payoff, settlement), • futures (standardization, clearing and settlement process), • swaps (concept, essentials of interest-rate swaps). 3. Contingent claims • Option contracts (definition, types of options), • basic parameters of options (exercise price, option premium), • profits and losses graphs (risk and payoff of simple option positions), • calculation of profit and losses of simple option positions (ITM, OTM, ATM). 4.Introduction to alternative investments • Definition and purpose of alternative investments, • classification (by exclusion and inclusion), • differences between alternative and traditional assets, • methods of investing in alternative assets (direct, fund investing), 5. Real assets investment • Natural resources and commodities (overview and characteristics), • real estate (forms of real estate ownership, investment categories) • infrastructure and other real assets, • advantages and disadvantages of investment approaches. 6. Hedge funds and private equity • Characteristics and main features of hedge funds, • overview and types of private equity, • role of venture capital (steps of stage financing), • performance and risks of private equity investments.

Conditions for subject completion

Full-time form (validity from: 2024/2025 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)		Min. number of pointsMax. počet pokusů
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 45  23
        Examination Examination 55  28 3
Mandatory attendence participation: Participation in lectures and seminars is not mandatory.

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Conditions for subject completion and attendance at the exercises within ISP: Participation in the seminars is not mandatory. The student must meet the requirements for completing the subject - credit (successful completion of the credit test), submission of the project and successful completion of the written exam. Attendance at lectures is optional.

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Occurrence in study plans

Academic yearProgrammeBranch/spec.Spec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2024/2025 (B0412EKF015) Financial and Accounting Advisory P English Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner

Assessment of instruction

Předmět neobsahuje žádné hodnocení.