THE UNIVERSITY OF EDINBURGH 
BUST10023: Futures and Options 
Final Examination Guide and Notes 2025 
 
- Part 01: About This Guide 
- Part 02: Sample Final Examination Paper 
- Part 03: Suggested Solutions to Final Exam Paper 
- Part 04: Final Examination - Hints and Tips 
 
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University of Edinburgh - BUST10023: Futures and Options

£25.00

ACADEMIC YEAR 2025 - 2026

University	University of Edinburgh
Course Code	BUST10023
Course Name	Futures and Options
Credit level	SCQF Level 10
SCQF Credits	20
Notes Title	Final Examination Guide and Notes
Format	PDF
Page Length	30

Studying BUST10023: Futures and Options at the University of Edinburgh? This clear, concise set of notes keeps you focused on what really appears in the final exam. Inside you’ll find exam-style papers with full solutions, step-by-step explanations, and final-exam hints and tips. Updated and easy to use, it’s ideal for fast revision and walking into the final with confidence.

The course covers the market structure, use and pricing of futures and options, two key elements of financial markets. Both allow users to modify and transfer risks, take speculative positions, and develop investment strategies and the markets in which they are traded are significant elements of most advanced economies. Key questions as to their applications and pricing form a specialist area in finance. In particular, options involve the development of complex models for, pricing and monitoring their behaviour. A sub-element of the course will examine the use and pricing of interest rate and cross-currency swaps.

The Honours course Futures and Options is part of the suite of honours courses offered by the Business School in finance. It is normally taken in the third year of study of the MA degree at the University of Edinburgh, and is part of the finance progression stream. The course aims to provide students with the tools, knowledge and understanding of the derivative product set (that is, forward contracts, futures, swaps and options), how the instruments are priced, and the markets in which they are traded. The emphasis is on financial management and pricing. To integrate the discussion of these instruments, the course stresses the relationships that exist between the different instruments and, in particular, the various no-arbitrage and replication conditions that underlie the fair pricing of derivatives. Note that the course does not delve into the more advanced aspects of derivatives pricing such as stochastic processes, although some understanding of this is required.

✔ Outline Content:

Introduction to Futures and Options
Forward and Futures Prices and Using Futures
Commodity Futures
Swaps 1: Pricing
Swaps 2: Application
Introduction to Options and Option Strategies
Pricing Options
Extending the Models to Indices, Currencies and Futures
The Greeks of Option Pricing:
Exotic Options

Pre-requisites: Students MUST have passed: Principles of Finance (BUST08003) OR Introduction to Corporate Finance (BUST08030).

COURSE CODE	COURSE NAME
ACCN08007	Accountancy 1A
ACCN08008	Accountancy 1B
ACCN08009	Accountancy 2A
ACCN08012	Accounting for Business 1
BUST08003	Principles of Finance
BUST08004	Marketing
BUST08005	Business Economics
BUST08018	Applications of Finance
BUST08029	Introduction to Financial Markets
BUST08030	Introduction to Corporate Finance
BUST08033	Introduction to Data Analysis
BUST10012	Corporate Finance
BUST10023	Futures and Options
BUST10032	Investment and Securities Markets
ECNM08004	Economic Principles
ECNM08016	Statistical Methods for Economics
ECNM10052	Essentials of Econometrics
ECNM10056	Applications of Econometrics
ECNM10069	Topics in Macroeconomics
ECNM10070	Topics in Microeconomics
MATH08051	Statistics
PPLS08001	Research Methods and Statistics

University of Edinburgh - BUST10023: Futures and Options

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