Study-Unit Description

Study-Unit Description


CODE DLT5302

 
TITLE Investments, Securities, Derivatives and Cryptocurrencies

 
UM LEVEL 05 - Postgraduate Modular Diploma or Degree Course

 
MQF LEVEL 7

 
ECTS CREDITS 5

 
DEPARTMENT Centre for Distributed Ledger Technologies

 
DESCRIPTION The study-unit is designed to provide an understanding of the fields of investments, securities and financial derivatives which are then applied and contextualised within the ambit of cryptocurrencies and other tokens.

The study-unit covers the following areas with contextualisation within the cryptocurrency sector:

- Introductory lectures to familiarize beginners with an overview of what investments, securities and derivatives are all about;
- An analysis of Return and Risk, along with the basics of Portfolio Theory and capital market Theory;
- The basics of Valuation (and therefore the fundamentals of security analysis);
- Forward contracts, futures, swaps, and options;
- Fundamental Analysis, which is the heart of security analysis;
- Portfolio Management and the issue of Evaluating Portfolio Performance;
- Stock Market Data;
- Trader Behaviour and Securities Mis-pricing;
- Market Liquidity;
- Different Trader Types;
- Investment Policies;
- Order-Driven Markets.

Study-Unit Aims:

The aim of this study-unit is to provide students with an introduction to investments, securities and derivatives contextualised within the cryptocurrency sector. The study-units aims to equip the students with sound fundamental knowledge from the traditional financial world that can then be applied into the ever-changing cryptocurrency sector.

Learning Outcomes:

1. Knowledge & Understanding:

By the end of the study-unit the student will be able to:

- Differentiate between the different types of financial instruments;
- Describe different investment opportunities available;
- Explain what the various derivative instruments consist of, how they are used, why they; are used, and the various differences between them;
- Explain different methods of pricing of such instruments;
- Describe the main issues related to market volatility.

2. Skills:

By the end of the study-unit the student will be able to:

make informed investment decisions;
- recognize where investment problems and controversies arise;
- Recognise prevalent trends in securities markets and different types of market participants;
- Distinguish between various trading setups;
- Apply the traditional financial analysis and techniques to cryptocurrencies.

Main Text/s and any supplementary readings:

- John Hull, Options, Futures and other Derivatives, 11th Edition, 2021, Prentice Hall.
- Jensen and Jones. “Investments: Analysis and Management”, John Wiley & Sons, 2019.
- Harris, L., Trading and Exchanges: Market Microstructure for Practitioners, Oxford University Press, 2003 [ISBN: 9-780195-144703]

 
STUDY-UNIT TYPE Lecture, Independent Study & Tutorial

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Sept. Asst Session Weighting
Assignment SEM2 Yes 100%

 
LECTURER/S

 

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit