FNCE30007 Derivative Securities
University of Melbourne · Level 3 · 12.5 points · Runs in 2026: Semester 1, Semester 2.
- Final exam 65%: exam-heavy
Is FNCE30007 hard?
FNCE30007: About average. Makes it harder: Final exam 65%.
What you learn
Forwards, futures, swaps and options: how they trade, how to price them by arbitrage, and how to hedge.
After it you can
- Draw and read payoff diagrams
- Price options with Black-Scholes and binomial models
- Use derivatives to hedge risk
What you need first
(FNCE20005 or FNCE20001) and (MAST20029 or ECOM20001 or ECON20003 or MAST20004 or MAST20005 or MAST20006 or MAST20018)
- FNCE20005 Corporate Financial Decision Making
- MAST20029 Engineering Mathematics
- ECOM20001 Econometrics 1
- ECON20003 Quantitative Methods 2
- MAST20004 Probability
- MAST20005 Statistics
- MAST20006 Probability for Statistics
- MAST20018 Discrete Maths and Operations Research
How it’s assessed
Participation 10%, Tests 25%, Final exam 65%
Student reviews and ratings
Summarised from 10 students on StudentVIP (2018–2025)
- Lectures are widely praised as clear, with many examples; the newest reviews say the content is heavy and somewhat mathematical but intuitive once the models click.
- Difficulty views differ: some around 2020 called the exams very hard, while recent reviewers found the mid-semester test balanced; generous scaling comes up often.
- Tutorial questions closely match the final exam; calculations can be slow, so manage time in the exam and skip low-mark questions that eat time.
- Understand the concepts rather than memorising formulas, as rote learning does poorly; practice questions and the textbook help build intuition.
A summary of public reviews, not scored here.
Taken this subject? Rate it anonymously (difficulty, workload, marking, would you recommend it) and leave a tip for next year's students. Rate FNCE30007
Quick answers
- When is FNCE30007 offered?
- Runs in 2026: Semester 1, Semester 2.
- What do I need before taking FNCE30007?
- Needs (FNCE20005 or FNCE20001) and (MAST20029 or ECOM20001 or ECON20003 or MAST20004 or MAST20005 or MAST20006 or MAST20018).
- Does FNCE30007 have a final exam?
- Yes, the final exam is 65% of the mark. Assessment: Participation 10%, Tests 25%, Final exam 65%.
- Is FNCE30007 hard?
- From 10 student reviews on StudentVIP: Lectures are widely praised as clear, with many examples; the newest reviews say the content is heavy and somewhat mathematical but intuitive once the models click.
- What do students say about FNCE30007?
- Lectures are widely praised as clear, with many examples; the newest reviews say the content is heavy and somewhat mathematical but intuitive once the models click. Difficulty views differ: some around 2020 called the exams very hard, while recent reviewers found the mid-semester test balanced; generous scaling comes up often. Tutorial questions closely match the final exam; calculations can be slow, so manage time in the exam and skip low-mark questions that eat time.
- Can I take FNCE30007 as breadth?
- Yes, for: Bachelor of Arts, Bachelor of Biomedicine, Bachelor of Design, Bachelor of Fine Arts (Acting), Bachelor of Fine Arts (Animation), Bachelor of Fine Arts (Dance), Bachelor of Fine Arts (Film and Television), Bachelor of Fine Arts (Music Theatre), Bachelor of Fine Arts (Production), Bachelor of Fine Arts (Screenwriting), Bachelor of Fine Arts (Theatre), Bachelor of Fine Arts (Visual Art), Bachelor of Music, Bachelor of Science.
- Can I rate FNCE30007?
- Yes. If you've taken it, rate it anonymously on this page (difficulty, workload, marking, would you recommend it) and leave a tip for next year's students. Averages show once 3 students have rated it; tips are checked before they appear.
Source: University of Melbourne Handbook 2026
Always confirm in the official Handbook.
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