Derivatives and option foundations

Unit 11: Derivative SecuritiesTopic 1 of 4

Browse the Fundamentals of Investment syllabus

Fundamentals of Investment

12 units

1 The Investment Environment
2 Securities Markets
3 Investment Information and Securities Transactions
4 Risk, Return and Portfolio Management
5 Common Stock Fundamentals
- Ownership and stock characteristics
- Dividends and strategies
6 Common Stock Analysis and Valuation
7 Fixed Income Securities
8 Bond Valuation
9 Mutual Fund and Performance Evaluation
- Fund structures and services
- Fund selection, performance and Nepal
10 Managing Portfolios
11 Derivative Securities
12 Project Work
- Project requirement
- Assignment and preparation

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What the syllabus expects

Concept of derivative securities
Put and call options: basic features, advantages and disadvantages
Option markets
Stock options

Derivatives and option foundations

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Investment (FIN 253)

Unit 11: Derivative Securities

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

Explain the scope and key elements of derivatives and option foundations.
Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

Concept of derivative securities
Put and call options: basic features, advantages and disadvantages
Option markets
Stock options

Detailed Microsyllabus

Derivative foundations
1. Contracts linked to an underlying variable.
2. Purposes and principal risks.
3. Distinguish derivative exposure from owning the underlying.
Options
1. Put and call rights and obligations.
2. Basic advantages and disadvantages.
3. Stock-option and market concepts.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 89–91.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.