ACCA40636 – Derivatives Markets | My Assignment Tutor

ACCA40636 – Derivatives MarketsAssessment BriefModule: ACCA40636 – Derivatives MarketsSubmission deadline: Sunday 18th of July 2021, 11:00PM (23:00)Word Limit: 4,000 wordsTaskPlease, complete both parts of the assessment as stand-alone sections, each withtheir own reference list at the end of each task. Both parts count equally towardsyour final mark. You can distribute your 4,000 words as you prefer across thetasks. Only the overall word count of the assessment is capped at 4,000.Part A (approx. 2,000 words)Pick a call option reported on CBOE ( characterised by apositive open interest. Using the most up to date data, determine the “BlackScholes-Merton price” (without dividends) of the option you picked and compare itwith the actual price reported on CBOE. You should report all the intermediate stepsof the calculations and discuss whether the assumption underlying the BlackScholes formula are fulfilled. Discuss from where the difference in your calculatedprice and the observed market price might have arisen. In addition, report how youderived the volatility used to find the Black-Scholes-Merton price.Please start your answer by reporting the following values as demonstrated below(examples are in italics):• Ticker Symbol: AA (Alcoa Corporation)• Strike Price: $36.00• Bid and ask price of the option: $1.29 – $1.37• Price of the underlying asset: 36.95• Expiration date: Fri June 18 2021• Date accessed: Tue June 15 2021, accessed at 10:10Alcoa Corporation Option Quote collected on the 15th of June 2021Part B (approx. 2,000 words)Discuss the benefits of options, swaps, forwards and futures and comment on thenegative aspects by making references to past crises and events that triggeredinstability in global markets. Conclude your discussion on an evaluation on whetherthe benefits outweigh the negative aspects.(turn page for important assessment information)IMPORTANT ASSESSMENT INFORMATION FOR STUDENTS(PLEASE READ)Definitions of Assessment OffencesPlagiarismPlagiarism is when you present someone else’s work, words, images, opinions ordiscoveries, whether published or not, as your own. It is also when you take theartwork, images or computer-generated work of others, without properlyacknowledging where this is from or you do this without their permission.You can commit plagiarism in examinations, but it is most likely to happen incoursework, assignments, portfolios, essays, dissertations and so on.Examples of plagiarism include:• Directly copying from written work, physical work, performances, recordedwork or images, without saying where this is from.• Using information from the internet or electronic media (such as DVDs andCDs) which belongs to someone else, and presenting it as your own.• Rewording someone else’s work, without referencing them.• Handing in something for assessment which has been produced by anotherstudent or person.It is important that you do not plagiarise – intentionally or unintentionally – becausethe work of others and their ideas are their own. There are benefits to producingoriginal ideas in terms of awards, prizes, qualifications, reputation and so on. Touse someone else’s work, words, images, ideas or discoveries is a form of theft.CollusionCollusion is similar to plagiarism as it is an attempt to present another’s work asyour own. In plagiarism the original owner of the work is not aware you are usingit, in collusion two or more people may be involved in trying to produce one piece ofwork to benefit one individual, or plagiarising another person’s work.Examples of collusion include:• Agreeing with others to cheat.• Getting someone else to produce part or all of your work.• Copying the work of another person (with their permission).• Submitting work from essay banks.• Paying someone to produce work for you.• Allowing another student to copy your own work.CheatingCheating is when someone aims to get unfair advantage over others.Examples of cheating include:• Taking unauthorised material into the examination room.• Inventing results (including experiments, research, interviews andobservations).• Handing your own previously graded work back in.• Getting an examination paper before it is released.• Behaving in a way that means other students perform poorly.• Pretending to be another student.• Trying to bribe members of staff or examiners.Help in avoiding offencesMost of our students are honest and want to avoid making assessment offences.We have a variety of resources, advice and guidance available to help make sureyou can develop good academic skills. We will make sure that we make availableconsistent statements about what we expect throughout all modules.You can get advice from your module tutors and personal tutors should you wish toclarify anything contained in this statement.(turn page for assessment matrix)


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