FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES

EECO 82508: DERIVATIVE INSTRUMENTS

MR. I. VAN DER MERWE

Welcome to the Faculty of

Economic and Management

Sciences!
The information that follows explains the regulations and policies of this
Faculty. Please read through the information carefully and make sure that you
understand it. It is your own responsibility to be aware of all the
regulations and policies of the Faculty and relevant Department, but
also the general regulations of the University.
1.

REGULATIONS OF THE UNIVERSITY, FACULTY AND DEPARTMENT

1.1

GENERAL REGULATIONS OF THE UNIVERSITY OF THE FREE STATE

The General Regulations of the University of the Free State are explained in the
yearbook (calendar), which you may collect from the Information Centre
(Thakaneng Bridge). Alternatively, you could access the UFS website at
www.ufs.ac.za. At Students, select About the UFS and then Policy
documents (under UFS facts) and then select Admission Requirements
and General regulations and scroll to General Regulations for first
qualifications 2011 (This is a PDF file - more than 100 pages).
Following is a summary of the Regulations. The most important regulations are
printed in bold letters.
Reg. A1:
Admission to the University
Reg. A2:
Admission: Degree Study
Reg. A3:
Admission: Diploma and certificate study
Reg. A4:
Admission: Occasional Study and CPP
Reg. A5:
Submission of documentation for the purpose of gaining admission
to the University
Reg. A6:
Registration as a student and module changes
Reg. A7:
Simultaneous registration at this and/or another higher education
Institution
Reg. A8: Curriculum composition and duration of study
FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES:
Sequence of courses and prerequisites
Reg. A9:
Taking of modules simultaneously at different levels
Reg. A10: Recognition of modules passed at another higher education
institution
Reg. A11: Recognition of modules passed prior to obtaining a qualification at
this university
Reg. A12: Recognition of modules after obtaining a qualification at this
university
Reg. A13: Presentation of the same qualification as a second qualification
Reg. A14: Module mark
2

Reg. A15:
Reg. A16:
Reg. A17:
Reg. A18:
Reg. A19:
Reg. A20:
Reg. A21:
Reg. A22:
Reg. A23:
Reg. A24:
Reg. A25:
Reg. A26:
Reg. A27:
Reg. A28:
Reg. A29:
Reg. A30:
Reg. A31:
1.2

Examination opportunities
Assessors/moderators
Requirements for successful completion of study
First degree/diploma with distinction
Re-admission and checking of a student
Promotion
Centers where examinations are taken down
Oral examination
Requirements for examination venues
Errors with regard to the examination timetable
Extra time during the examination
Statement of results
Examination results
Statement of results, study records, certified statements,
certificates of conduct and certified examination timetables.
Qualification certificates
Graduation ceremonies
Exceptional merit qualifications

EXAM REGULATIONS

Please visit the website of the University at www.ufs.ac.za for more information
on regulations and rules when writing examinations. Click on Students and
then select Examinations under Academic Information. Here you will find
information on:
The examination timetable
Examination results
Examination opportunities
What do you need to pass?
Examination venues: the dos and donts
Application for additional examinations (Look under Academic information
on the left of the screen)
Please familiarise yourself with Regulation A14 regarding the minimum
module mark for admission to the examination.
1.3 TEST POLICY OF THE FACULTY OF ECONOMIC AND MANAGEMENT
SCIENCES
1. For students that could not write the scheduled test due to valid reasons, an
alternative test will be scheduled
2. The following instances will be regarded as valid reasons:
a. Where a clash between two modules tests exist. This is only a valid
reason if the clashes between the two tests occur in the same time
slot.
b. Unforeseen circumstances (medical or compassionate reasons)
3

3. In order to qualify for the

alternative tests, students have to
complete
the
appropriate
documentation, which must be
handed in together with the answer script, on the day of the scheduled
alternative test. No alternative test will be marked if the documentation is
not attached to the answer sheet. (See documentation on next pages)
4. In the case of 2a the supporting documentation must include a letter on a
letterhead containing the following information: module code, date and time
of clash and details of the specific lecturer.
5. All applications are subject to approval.
6. Applications without supporting documentation will not be considered.
7. ONLY students who did not write the scheduled semester test and have a
legal reason (as indicated in point 2) will be allowed to write the alternative
test.
8. The semester test will be on all the work that was completed up to the
specific semester test.
9. The alternative test opportunity cannot be used as a way to improve current
test results.
10. If a student writes both the scheduled semester test, as well as the
alternative test, the alternative test will not be marked and only the results
of the semester test will be taken into account in the final calculation of the
semester mark.
11. No additional tests will be set to accommodate students that could not
participate in the scheduled test opportunities.
12. If you qualify to write the alternative test and circumstances (medical and
compassionate reasons) prevent you from writing the alternative test a zero
mark will be allocated for the test that you missed. There is no alternative
for the alternative test.

EKONOMIESE EN BESTUURSWETENSKAPPE
ECONOMIC AND MANAGEMENT SCIENCES
AANSOEKVORM: ALTERNATIEWE SEMESTERTOETS
APPLICATION FORM: ALTERNATIVE SEMESTER TEST
AFDELING A: Om deur student voltooi te word.
SECTION A: To be completed by the student.
MERK DIE REDE VIR DIE AANSOEK
MARK THE REASON FOR THE APPLICATION
BOTSING MET ANDER GESKEDULEERDE SEMESTERTOETS IN DIESELFDE TYDSGLEUF
(Voltooi Afdeling A en B)
CLASH WITH OTHER SCHEDULED SEMESTER TEST IN THE SAME TIME SLOT (Complete
section A and B)
AANSOEK VIR ALTERNATIEWE SEMESTERTOETS WEENS ONVOORSIENE OMSTANDIGHEDE
(Voltooi Afdeling A en B)
APPLICATION FOR ALTERNATIVE SEMESTER TEST DUE TO UNFORESEEN CIRCUMSTANCES

(Complete section A and B)

AANSOEK VIR AANVULLENDE EKSAMEN WEENS SIEKTE (Voltooi Afdeling A en C)
APPLICATION FOR ADDITIONAL EXAMINATION DUE TO ILLNESS (Complete section A and
C)
STUDENTENOMMER:
STUDENT NUMBER:
VOLLE NAME:
FULL NAMES:
VAN:
SURNAME:
E-POS ADRES:
E-MAIL ADDRESS:
TEL./SELFOONNOMMER. VAN AANSOEKER:
TEL. /CELLULAR PHONE NUMBER OF
APPLICANT:
KWALIFIKASIE WAARVOOR GEREGISTREER IS:
QUALIFICATION REGISTERED FOR:
MODULE(S) TER SPRAKE: Dui modulekode aan
RELEVANT MODULE(S): Indicate module code
INDICATE THE TEST THAT YOU MISSED

FIRST SEMESTER TEST

SECOND SEMESTER TEST

AFDELING B: Om deur student voltooi te word.

SECTION B: To be completed by the student.
REDE/MOTIVERING VIR DIE AANSOEK (DOKUMENTE TER STAWING MOET AANGEHEG WEES):
REASON/MOTIVATION FOR THE APPLICATION (SUPPORTING DOCUMENTS NEED TO BE
ATTACHED):

................................................................
.....................
DATUM/DATE
AANSOEKER

..........................................
HANDTEKENING VAN
SIGNATURE OF APPLICANT

AFDELING C: Moet deur n mediese dokter/sielkundige voltooi word NADAT die student
Afdeling A voltooi het:
SECTION C: To be completed by a medical doctor/psychologist AFTER Section A has been
completed by the student:
NAAM VAN MEDIESE DOKTER (In drukskrif):
NAME OF MEDICAL DOCTOR (Printed):
Praktyknommer:
Practice number:
Telefoonnommer:
Telephone number:
Datum waarop bogenoemde student u vir die
eerste keer gekonsulteer het in verband met die
siekte gemeld in Afdeling A:

Date on which the above-mentioned student

consulted you for the first time in connection with
the illness mentioned in Section A:

Het u persoonlik die student medies ondersoek en

sy/haar siekte gediagnoseer? (Merk die toepaslike
blokkie):
JA / YES
NEE / NO
Have you personally medically examined the
student and diagnosed his/her illness? (Mark the
applicable block):
Indien ja, meld duidelik die aard van die siekte, disorintasie of besering in so verre vasgestel kon
word, asook kort besonderhede ten aansien van die vordering, eienskappe, erns en oorsaak daarvan:
If yes, state clearly the nature of the illness, disorder or injury in so for as can be determined, adding
brief particulars regarding the progress, characteristics, severity and cause thereof:

Bogemelde student maak sekere beweringe in

The above-mentioned student makes certain
Afdeling A hierbo. Sal u as mediese dokter
statements in Section A above. Will you as a
hieronder aandui tot watter mate die bewering(e)
medical doctor confirm his/her statement?
bevestig kan word:
Die student kon nie
Die student kon voorberei
Die student kon nie vir die eksamen
genoegsaam voorberei vir
vir die bogenoemde
voorberei nie en kon dit ook nie
die boegnoemde eksamen
eksamen, maar was nie in
bywoon of afl nie.
nie.
staat om dit by te woon
The student could not
en af te l nie.
The student could neither prepare
adequately prepare for
The student could prepare
nor sit for the above-mentioned
the above-mentioned
for the above-mentioned
examination.
examination.
examination, but was not
able to sit for it.
Datum waarop, na u mening, die student in staat sal
wees om die toets af te l?
Date on which, in your opinion, the student should be fit
to sit for the test?
Verdere kommentaar (bv. i.v.m. die pasint se vorige mediese geskiedenis, indien enige).
Additional comments (e.g. concerning patients previous medical history, if any):

Ek bevestig dat die inligting wat ek in hierdie Afdeling B verskaf het waar en korrek in elke
opsig is.
I confirm that the information supplied in this Section is true and accurate in every respect.

...............................................
......................
HANDTEKENING /SIGNATURE
DATUM/DATE

.........................

2.

CONTACT DETAILS OF LECTURER(S)

Consulting
hours

Office number
3.

MR. I. VAN DER MERWE

Monday,
09:00 -12:00
Wednesday, 09:00-12:00
vdmerwei@ufs.ac.za
(051) 401 3429
FGG 337

CONTACT DETAILS OF SUPPORT PERSONNEL IN DEPARTMENT

Office number
Consulting
hours

MS. T. VISSER (SECRETARY)

FGG 333
Monday-Friday, 09:00-13:00
Vissertl@ufs.ac.za
(051) 401 3453

MS. H. VAN TONDER (MARK CO-ORDINATOR)

Office number
FGG 346
Consulting
Monday-Friday, 09:00-13:00, 14:00-16:00
hours

Vtonderh@ufs.ac.za

(051) 401 2166

CONTACT SESSIONS AND VENUES

This information will be finalised during the orientation lectures and will be on
Blackboard.
The following
16/11/2014
DAY
Monday
Tuesday
Wednesday
Thursday

5.

applies for the period between 26/08/2014 and

PERIOD
11-13
11-13
11-13
11-13

TIME
17h00-20h00
17h00-20h00
17h00-20h00
17h00-20h00

VENUE
FGG363
FGG363
FGG363
FGG378

CREDITS AND NOTIONAL LEARNING HOURS

Each module is worth a certain number of credits. To obtain a first qualification

(degree) you need a minimum of 360 credits. Most semester modules in our
Faculty are worth 16 credits. This module is worth 30 credits.
Notional learning hours indicate the amount of time that the average student
will spend to achieve success in a particular module. These notional learning
hours will include all the time that you are working on the module, for example
attending classes, studying for tests and exams, writing tests and exams, group
work, preparation and research for module assessments, etc. In other words, it
will be all the time that you spend on the module.
You will get an indication of the notional learning hours by multiplying the
credits by 10. This implies that you will have to spend on average 160 hours to
achieve success in a semester module.
Remember that we use the average student as yardstick; some students will
need more time while others may need less time to be successful.

6.

COURSE/MODULE OUTCOMES

At the end of this course/module, the student will be able to:

7.
1)

2)
3)
4)
5)

Be able to describe the general characteristics and functioning of

forward,
futures, option and swap markets;
Be able to demonstrate an understanding of the pricing of forward,
futures, option and swap contracts and the application of the most
important pricing models in this respect;
Be able to explain and employ hedging, speculating and arbitrage
strategies with regard to forward, futures, option and swap markets;

PRESCRIBED TEXT BOOK(S)

Primary source
Chance, D.M. and Brooks, R. 2010. An Introduction to Derivatives and Risk
Management. 8th edition, South-Western, Cengage Learning.
Secondary sources
Kolb, R. and Overdahl, J.A. 2009. Financial Derivatives: Pricing and Risk
Management. Wiley.
Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives. 3rd edition.
Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition. Prentice Hall.
Various other sources as indicated in work program.
8. EBW SKILLS
All students registered at the Faculty of Economic and Management Sciences
have access to EBW Skills that consists of short resource information packs like
netetiquette, how to use the library, how to take notes, how to summarise
information, problem solving, how to answer case studies etc. Please go to ILEARN (Blackboard) on the universitys website and click on the module code,
EBW Skills.
If you do not have access to this module on Blackboard, please contact the
Helpdesk at 051 401 9452 or ilearn@ufs.ac.za or go to the helpdesk at the
Student Centre next to the Sasol Library.

10

9. PLAGIARISM
The Faculty supports the UFS Policy on the Prevention of Plagiarism and Dealing
with Academic Writing Misconduct and regards all forms of plagiarism as well
as academic misconduct in a serious light.
In the policy plagiarism is defined as follows:
Plagiarism implies direct duplication of the formulation and insights of a source
text with the intention of presenting it as ones own work. Plagiarism cannot be
confirmed as a result of mere similarities of words between the source text and
the borrowed text as in the case of terminology, commonly used phrases and
known facts.
Plagiarism is distinguished from forms of academic writing misconduct such as:
cribbing in tests and examinations;
collusion and fabrication or falsification of data;
deliberate dishonesty;
purchasing assignments, dissertations and/or theses on the Internet and
presenting such documents as ones own work;
presenting the same work for more than one course or in consecutive
years; and
the submission of another persons work as ones own original work.
Plagiarism is also applicable when no recognition is given to the original author.
Internet plagiarism applies to downloading, copying and pasting information as
well as not acknowledging these authors.
The faculty uses software that will screen the abovementioned categories for
misconduct. The faculty sees this in a very serious light and the measures as
indicated in the UFS policy will be followed.
If you would like more information on precisely what is meant with plagiarism
and when you are guilty of this, please go to I-LEARN (Blackboard) and look
under the module code EBW Skills. You can also access the complete document
on the UFS website, at www.ufs.ac.za and then select About the UFS under
UV Facts, look under Institutional Policy Documents. The complete policy as
well as other resources that deal with the various referencing systems, like
Harvard and the APA can be found.

11

10.

ASSESSMENT

Use will be made of continuous and summative assessment.

Students will accumulate marks throughout the semester which will make up
60% of the final mark. These marks will be accumulated through activities
such as discussions (class and online), presentations, online self-tests,
simulations and assignments. The final examination, which consists of two
separate exam papers, will make up the remaining 40% (equal weight for
each paper).
Two examination opportunities are scheduled for the semester, but each
student must read the faculty test and exam policy clearly in order to
understand the circumstances under which admission to the second exam
opportunity is granted.

Minimum module mark for admission to the examination

To be admitted to the official examination a minimum module mark of at least
40% must be obtained to enable a student to write the final official
examination.
As indicated above, the module mark is made up of the different assessments
(eg. semester tests, class tests, assignments etc.)
Appeal procedure and handling of academic issues
If a student would like to appeal any process or procedure, the following steps
must be followed: The student must first go back to the lecturer to try and
solve the problem, if the student feels that he received an unsatisfactory
answer he can then make an appointment with the head of department.
Hereafter the case can be referred to the programme director and if the
student still wants to appeal, he can then take the case in question to the dean
of the faculty. Only hereafter can the issue be taken to the vice-rector and lastly
the vice-chancellor.
11. COVER PAGES FOR ASSESSMENTS
All students registered for modules in the Faculty must use the cover page(s)
provided on the following pages as a front page when handing in any
assessments (excluding tests and examinations). There are two cover pages;
one for individual assessments and one for group assessments. The last cover
page that consists only of group members details will only be applicable if
there are more than 8 members in a group. These cover pages will also be
available electronically on I-LEARN (Blackboard).

12

FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES

COVER PAGE FOR INDIVIDUAL ASSESSMENTS
MODULE CODE:
SURNAME:
INITIAL
S:
STUDENT NUMBER:
DUE DATE:
DECLARATION BY STUDENT
I have read the Universitys Policy on the Prevention of Plagiarism and Dealing with Academic
Writing Misconduct:
I understand that I must:
1. abide by all the directives of this Policy, the Assessment Policy, course guides, specific
and general regulations and assessment requirements;
2. seek assistance if I am unsure about appropriate citation and referencing techniques;
3. accept responsibility for having full knowledge of the Policy;
4. submit only my own work for any form of assessment, except where:
the work of others is appropriately acknowledged; and
the assessor/moderator has required, or given prior permission for, group or
collaborative work to be submitted;
5. refrain from intentionally or negligently deceiving the reader by preventing my own work
from being copied by another student, who may or may not have an intentional or
negligent aim to deceive the reader;
6. be aware that according to the Policy, measures for all Level Four violations and
repeated Levels One, Two and Three violations are reported and investigated in
accordance with the UFS Statute on Student Discipline (see Chapter XIII, pp 50 58);
and
7. include with my assignment an electronic report of the software programme if
required/where applicable.

D
SIGNATURE
MARK:

STUDENT NR

PERCENTAGE:

M M Y

DATE

COMMENTS FROM ASSESSOR:

13

FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES

COVER PAGE FOR GROUP ASSESSMENTS
MODULE CODE:
GROUP NAME:
DUE DATE:
DECLARATION BY GROUP
We have read the Universitys Policy on the Prevention of Plagiarism and Dealing with Academic
Writing Misconduct:
We understand that we must:
1. abide by all the directives of this Policy, the Assessment Policy, course guides, specific
and general regulations and assessment requirements;
2. seek assistance if we are unsure about appropriate citation and referencing techniques;
3. accept responsibility for having full knowledge of the Policy;
4. submit only our own work for any form of assessment, except where:
the work of others is appropriately acknowledged; and
the assessor/moderator has required, or given prior permission for, group or
collaborative work to be submitted;
5. refrain from intentionally or negligently deceiving the reader by preventing our own
work from being copied by another student, who may or may not have an intentional or
negligent aim to deceive the reader;
6. be aware that according to the Policy, measures for all Level Four violations and
repeated Levels One, Two and Three violations are reported and investigated in
accordance with the UFS Statute on Student Discipline (see Chapter XIII, pp 50 58);
and
7. include with our assignment an electronic report of the software programme if
required/where applicable.

SURNAME

INITIALS

STUDENT NUMBER

SIGNATURE

1
2
3
4
5
6
7
8
9
10

12. WORK PROGRAMME

UNIT 1
Aim:

14

To give an introduction to derivative markets and

instruments and their origin.
Literature:
1) Chance & Brooks. 2010. Chapter 1
2) Chance. 2008. Essays in Derivatives: Risk-Transfer Tools and Topics Made
Easy, 2nd. edition.
a. Essay 2: A Brief History of Derivatives.
b. Essay 3: Why Derivatives?
3) Koppenhaver, G.D. 2009. Derivative Instruments: Forwards,
Futures, Options, Swaps, and Structured Products. Chapter 1 in
Kolb, R. and Overdahl, J.A. eds. 2009. Financial Derivatives Pricing and
Risk Management.
4) Lynch, T.E. Derivatives: A Twenty-First Century Understanding.
Loyola University Chicago Law Journal, Vol. 43
5) Culp, C. The Social Functions of Financial Derivatives. Chapter 4 in
Kolb, R. and Overdahl, J.A. eds. 2009. Financial Derivatives Pricing and
Risk Management.
6) Deutsche Brse Group. 2009. The Global Derivatives Market: A
Blueprint for Market Safety and Integrity.
7) Marthinsen, J.E. 2009. Derivative Scandals and Disasters. Chapter 23
in Kolb, R. and Overdahl, J.A. eds. 2009. Financial Derivatives Pricing
and Risk Management.
8) Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition. Chapter, 8:
Section on Derivative Debacles (pp. 251-266)
9) Hull, J.C. 2009. Options, Futures and other derivatives. 7 th edition. Chapter 1.
10)
Chui, M. 2009. Derivatives markets, products and participants: An
Overview. IFC Bulletin No 35.

FOCUS AREAS

Origin of derivative markets

Description of forward and futures contracts, options, options on futures
and swaps
15

Difference between speculation and hedging

Applications and misuses of derivative instruments
The concept of arbitrage
General concepts regarding derivative instruments and markets

At the end of this unit a student should be able to answer the

following questions:
1. Briefly explain what derivatives are by focusing on the following:
a. How to define derivatives ((4, pp.: 15-16))
b. What characteristics all derivatives transactions share. ((4, pp.: 16-19))
c. What characteristics derivatives might, but need not necessarily possess.
((4, pp.30-47))
d. Relationship between derivatives, insurance and gambling ((4, pp.47-50))
e. What the main types are. ((1); (3, pp. 6-16); (4-10))
2. Give a brief summary of the origin and development of derivative markets and
contracts. ((2))
3. Supply an overview of where the most important derivative markets are located
and what the main instruments trading on those markets are. ((4), (6), (10).
4. Critically evaluate why derivatives are used. ((1); (2b); (4, pp. 34-46); (5); (3);
(10)).
5. Why is criticism levelled against the usage (and misuse) of these instruments?
Summarise the detail behind the most well-known derivative scandals, their
common denominators, and the lessons to be learned from those scandals ((10);
(1); (7); (8)).
6. Explain the following concepts ((1), (10)):
a. Risk neural vs. risk aversion
b. Short selling
c. Market efficiency
d. Theoretical fair value
e. Arbitrage
f. What types of market participants use derivatives and why?
g. What risk is usually addressed with hedging?

Assessment:
(Part of assessment mark):
1. Class presentation

16

Group 1: Question 1(a) 1(d): Definition and nature of

derivatives.
Group 2: Question 1(e) & Q2: Overview and examples of types of
derivatives and their
uses (not social functions in general).
Group 3: Social functions of derivatives (in general, not
particular examples of how used).

2. Online class discussion 1

See Blackboard discussion board for topic and due date.

(Continuous assessment)
1. Continuous Homework:
At the end of the module you should be able to supply an
overview of the South African
derivatives market. (www.Safex.co.za)

UNIT 2
Aim:
To identify the essential foundations required to understand
the functioning of forward and futures markets.
Literature:
1) Chance & Brooks. 2010. Chapter 8
2) Koppenhaver, G.D. 2009. Derivative Instruments: Forwards,
Futures, Options, Swaps, and Structured Products. Chapter 1 in
Kolb, R. and Overdahl, J.A. eds. 2009. Financial Derivatives Pricing and
Risk Management.
3) Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 1 & 2.
4) www.Safex.co.za
5) Most of other sources in Unit 1.
FOCUS AREAS

Distinction between futures and forwards

Institutional characteristics of forwards and futures markets
Exchanges and types of futures
Participants, trading strategies and styles involved in futures trading
17

Mechanics of futures trading

Functions and solvability of a clearing house
Settlement of futures positions
Margin requirements (leverage effect)
Regulation of forward and futures markets

At the end of this unit a student should be able to answer the

following questions:
1. Define and distinguish between a forward and futures contract. ((1); (2); (3))
2. Summarise the historical development of forward and futures markets. ((1))
3. Explain the standardisation of futures contracts and specify the aim thereof.
((1))
4. What desirable attributes should underlying assets possess in order to ensure a
successful futures contract on that asset? ((1))
5. Classify futures traders based on (i) the trading strategy and (ii) the trading
style. ((1); (3))
6. Answer the following questions regarding clearing houses:
a. Explain the most important function of a clearing house ((1); (3)).
b. How does a clearing house guarantee the financial integrity of futures
contracts which are being traded? Focus on the following
i. Describe what a margin requirement is and point out its most
important objectives.
ii. What are the differences between a margin requirement in respect
of a share transaction and a futures transaction?
iii. Give a detailed discussion of the different kinds of margins.
iv. What does marking-to-market mean?
7.
Discuss the ways in which futures can be discontinued or terminated. ((1))
8.
Classify futures contracts based on the underlying assets from which they are
derived. ((1))
9.
Explain the following concepts:
a. Long vs. short positions
b. Volume
c. Open interest
d. Explain why the total outstanding futures contracts are always nil.

Assessment:
(Part of assessment mark):
1. Blackboard self-test 1:
Complete before class session starts (Chance, chapters 1 and 8)

(Continuous assessment)
1. Class exercise:

18

8th edition: Students should answer end of chapter 8 questions:

Qs 11 and 12.
9th edition: Students should answer end of chapter 8 questions:
Qs 16 and 17.

UNIT 3
Aim:
To examine the fundamental factors that affect futures
prices.
Literature:
1) Chance & Brooks. 2010. Chapter 9 & 10
2) Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition. C hapter, 2:

3)

4)

5)
6)
7)

Futures;
Junkus, J.C. 2009. Agricultural and Metallurgical Derivatives
Pricing. Chapter 5 in Kolb, R. and Overdahl, J.A. eds. 2009. Financial
Derivatives Pricing and Risk Management.
Dubofsky, D. The Pricing of Forward and Futures Contracts. Chapter
25 in Kolb, R. and Overdahl, J.A. eds. 2009. Financial Derivatives Pricing
and Risk Management.
Faure, A.P. 2006. Fair Value Pricing Of Agricultural Futures in South
Africa.
Kolb, R. 2004. Futures, options and swaps. Chpt. 3
Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 5.

FOCUS AREAS

19

Characteristics of futures prices

Forward and futures prices and value
Cost of carry model of futures prices
Futures prices, expectations and risk premiums
Arbitrage strategies in the presence of mispricing.

At the end of this unit a student should be able to answer the

following questions:
1. Explain the following terms ((2); (1)):
a. Settlement price
b. Nearby vs. distant contracts
c. Open interest vs. volume
d. Futures price vs. futures value
2.
When is open interest usually at its lowest/highest ((2, p.33)?
3.
Outline the relationship between cash and futures prices (i.e. the basis) by
referring to all related concepts in this respect. ((2, pp. 39))
4.
Define the spread and distinguish between different kinds of spreads. Why are
spreads traded? ((2, pp. 85-89))
5.
Give a detailed exposition of the cost-of-carry model in both perfect and
imperfect markets. ((2, pp. 34-45); (4); (3); (1))
6.
How does the cost-of-carry model apply to agricultural futures pricing in South
Africa? ((5)).
7.
What role does carry return play in the cost of carry model? ((1); (4, p. 354))
8.
What is quasi arbitrage? ((1))
9.
Explain what a full carry market is. What factors can cause futures prices to
move away from full carry? ((6, pp. 77-78); (1))
10.
How can the implied repo rate be calculated by using the spot and futures
price? Is this implied repo rate influenced by the presence of carry returns? ((2,
p. 50); (1)).
11.
What role do delivery options play in futures pricing? Who benefits from this?
((4, p. 357))
12.
Does the cost-of-carry model always apply? What role does the convenience
yield play in this? ( (1); (3))
13.
Regarding the expectations model of futures price determination. Explain the
following:
a. The role and limitations of speculation in the determining of futures
prices. ((6, pp. 80-83))
b. Risk aversion can play a significant role in causing futures prices to
diverge from the expected future spot price. Discuss the following two
theories in order to prove this statement:
i. The theory of normal backwardation.
ii. The Capital Asset Pricing Model (CAPM) ((7: pp.119-121).
14.
Make a clear distinction between the following terms:
a. Contango vs. normal contango
b. Backwardation vs. normal backwardation

20

15.
16.

Summarise the most important statistical characteristics of futures prices. ((2))

Illustrate arbitrage strategies using short-term interest rate futures ((2, pp. 4550)), stock index futures ((2, pp. 55-62); (1), and foreign exchange futures. ((2,
pp. 63-66), (1); (4, pp. 358-360)).

Assessment:
(Part of assessment mark):
1. Class presentation:
Group 4: Questions 13 & 14 above.

2. Blackboard self-test 2:
Complete before class session starts (Chance, chapters 9 and 10)

3. Online class discussion 2

See Blackboard discussion board for topic and due date.

(Continuous assessment)
1. Bring to class:
Cost of carry calculations homework

UNIT 4
Aim:
To identify and explore the various ways that futures
markets are used.
Literature:
1) Chance & Brooks. 2010. Chapter 11
2) Junkus, J.C. 2009. Agricultural and Metallurgical Derivatives Speculation and Hedging. Chapter 6 in Kolb, R. and Overdahl, J.A. eds.
2009. Financial Derivatives Pricing and Risk Management.
3) Kuserk, G. 2009. Speculation and Hedging. Chapter 3 in Kolb, R. and
Overdahl, J.A. eds.
2009. Financial Derivatives Pricing and Risk
Management.
4) Kenourgios, D. 2008. Hedge ratio estimation and hedging
effectiveness: the case of the S&P 500 stock index futures
contract.
5) Edwards, F.R. and Ma, D.W. 1992. Futures and options. New York:
McGraw-Hill. Chapters 5, 6 and 7;
21

6) Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition.

Chapter, 3: Risk Management with futures contracts;
7) Kolb, R. 2004. Futures, options and swaps. Chpt. 4.
8) Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 3.
9) Brooks, R. 2012. A Life Cycle View of Enterprise Risk Management:
The Case of Southwest Airlines Jet Fuel Hedging.
FOCUS AREAS

Hedging concepts and strategies

Concepts and strategies related to spreads
Speculation concepts and strategies
Target strategies

At the end of this unit a student must be able to answer the following
questions:
Regarding hedging:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Differentiate between risks that can and cannot be hedged. ((5))

Why do firms hedge? Are there reasons why firms should/should not hedge?
Differentiate between short and long hedging. Why should care be taken when
hedging with interest rate futures?
What is basis risk?
Provide examples of i) perfect hedging and ii) hedging with basis risk. ((5) Chpt.
5; (3); (2))
How does basis movement influence long and short hedging? Does this differ in
a contango and backwardation market?
How can basis risk be measured? ((5) Chpt. 5; (6) pp: 77-80). When is hedging,
given the presence of basis risk, still worthwhile? ((1)).
When will no basis risk exist? How can profits/losses from hedging be calculated
in advance in this case?
Explain how using certain basis relationships in hedging (basis hedging) can
reduce poor hedging performance ((5) p. 143-144).
What is cross-hedging?
What are the main factors to consider when hedging? ((1); (5))
What is the hedge ratio? How is the minimum variance hedge ratio calculated?
((1); (6); (5); (4))
What is the price sensitivity hedge ratio and when is it used?
How is hedging effectiveness measured? ((1); (5))
What does rolling the hedge forward entail?
Illustrate examples of hedging strategies with different underlying assets. ((6)
pp: 70-85)
Do hedgers need speculators? Explain by means of
a. The concept of a risk premium ((5) Chpt. 7) and thus theory of normal
backwardation ((7), Chpt. 3).

22

Regarding speculating:
18.
19.
20.
21.

Is the line between hedging and speculating always clear? Explain. ((3) pp. 5052), (1) p. 363).
Categorise speculators in terms of ((3) pp. 48-50):
a. their price expectations
b. their trading strategy
How can backwardation assist speculative profitmaking through roll return?
((2) pp. 92-93)
Can commodity futures provide diversification benefits?

Regarding spread strategies ((1); (6)):

22.
23.

Why are spread strategies employed?

Illustrate how inter- and intramarket spreads can be used.

Regarding target strategies:

24.

Illustrate how futures can be used to apply the following target strategies ((1);
(6)):
a. Target duration of bond portfolios
b. Alpha capture
c. Target Beta of share portfolios
d. Tactical asset allocation with a combined bond & share portfolio.

Assessment:
(Part of assessment mark):
1. Class presentations:
Group 5: Question 17: Do hedgers need speculators?
Group 6: Question 24: Illustrate how futures can be used to
apply certain target
strategies?

2. Blackboard self-test 3:

Complete before class session starts (Chance, chapter 11)

3. Online class discussion 3

See Blackboard discussion board for topic.

(Continuous assessment)
1. Bring to class:
Specified end of chapter questions done for homework
23

UNIT 5
Aim:
To give an introduction to swaps and swap markets.
Literature:
1) Chance & Brooks. 2010. Chapter 12
2) Gay, G. & Venkateswaran, A. The Pricing and Valuation of Swaps
3) Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition.
Chapter, 6.
4) Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 7.
5) Other sources as posted on Blackboard.
FOCUS AREAS

Characteristics of the Swaps market

Plain vanilla swaps
Motivations for using swaps
Pricing of swaps
Swap trading strategies
Beyond vanilla swaps

At the end of this unit a student should be able to answer the

following questions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

Discuss the main characteristics of the swaps market.

Define and briefly explain what interest rate swaps are.
How are plain vanilla interest rate swaps structured?
How are plain vanilla interest rate swaps priced?
Apply a simple interest rate swap strategy.
Explain the functioning of index amortizing, diff and constant maturity swaps.
Supply a brief explanation of currency swaps.
How are typical currency swaps structured?
How are typical currency swaps priced?
Apply a simple currency swap strategy.
Supply a brief explanation of equity swaps.
How are typical equity swaps structured?
How are typical equity swaps priced?
Apply a simple equity swap strategy.
How do credit derivatives work?
What risks are involved in CDS trading?
Highlight the CDS transaction mechanics.
Briefly discuss the reason for and functioning of
a. Total return swaps
b. Asset swaps

24

Assessment:
(Part of assessment mark):
1. Blackboard self-test 4:
Complete before class session starts (Chance, chapter 12)

(Continuous assessment)
1. Bring to class:
Specified end of chapter questions done for homework

UNIT 6
Aim:
To give an introduction to options and option markets.
25

Literature:
1) Chance & Brooks. 2010. Chapter 2
2) www.Safex.co.za
3) Koppenhaver, G.D. Derivative Instruments: Forwards, Futures,
Options, Swaps, and Structured Products. Chapter 1 in Kolb, R. and
Overdahl, J.A. eds. 2009. Financial Derivatives Pricing and Risk
Management.
4) Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition.
Chapter, 4.
5) Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 8.
FOCUS AREAS

Definition of an option
Relevant concepts with regard to options
Option trading procedures
The clearinghouse and margins
Exercising vs. offsetting an option
Option price quotations
Types of options

At the end of this unit a student must be able to answer the following
questions:
1.
2.
3.

4.

5.
6.

Briefly outline the historical development option markets on international as

well as national level. ((1); (2))
Define an option.
Regarding call and put options:
a. Differentiate between call (long and short) and put (long and short)
options.
b. Illustrate the functioning of call and put options. Make use of diagrams
and graphs to illustrate your answer.
Explain the following concepts regarding options:
a. Exercise price
b. Premium
c. In-, at- and out-of the money
d. American vs. European option
e. Discuss the components of the price of an option.
Why are OTC options popular? What advantages and disadvantages are
associated with OTC options?
Outline the following specifics related to exchange-listed options trading:
a. Listing requirements

26

7.
8.
9.

10.
11.
12.

b. Contract size
c. Exercise price and dates
d. Position and exercise limits
e. Mechanics of trading
What role does the clearinghouse play in options trading?
What role do margins play in options trading?
What can an owner of an option do with it on any specific day? Is this the same
for American and European options? Is it the same for OTC and exchange-traded
options?
Describe the process of exercising an option and what the implications are
thereof.
What general price relationships are present when analysing option price
quotations?
What are the main underlying assets on which options are traded?

UNIT 7
Aim:
To explore option pricing principles
Literature:
1. Chance & Brooks. 2010. Chapter 3
2. Strong, R. 2009. No-Arbitrage Pricing. Chapter 24 in Kolb, R. and
Overdahl, J.A. eds. 2009. Financial Derivatives Pricing and Risk
Management.
27

3. Kolb, R. and Overdahl, J.A. 2003. Financial Derivatives 3rd edition.

Chapter, 6.
4. Knoll, M. Put-Call Parity and the Law.
5. Knoll, M. 2004. The Ancient Roots of Modern Financial Innovation:
The Early History of Regulatory Arbitrage.
6. Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 9.
FOCUS AREAS

Option values before expiration

Bounds on option prices
Factors that affect the value of options.
American versus European options
Put-Call Parity relationship

After completing this unit a student should be able to answer the

following questions:
1.
2.

Define the boundary space for an option.

Illustrate and interpret the boundary space for a call option. Include the
following:
a. Minimum and maximum values before expiration
b. Value at expiration
c. Effect of time to expiration
d. Effect of exercise price
e. Lower bound of European call
f. Difference in price of American vs. European call
g. Early exercise of American calls due to dividends
h. Effect of interest rate
i. Effect of share volatility
3.
Illustrate and interpret the boundary space for a put option. Include the
following:
a. Minimum and maximum values before expiration
b. Value at expiration
c. Effect of time to expiration
d. Effect of exercise price
e. Lower bound of European put
f. Difference in price of American vs. European put
g. Early exercise of American puts
h. Effect of interest rate
i. Effect of share volatility
4. Illustrate and explain the principle of Put-Call Parity ((2) pp. 336-341)
5. Provide examples of how Put-Call Parity has been used to perform regulatory
arbitrage. ((4); (5))

28

Assessment:
(Part of assessment mark):
1. Blackboard self-test 5:
Complete before class session starts (Chance, chapters 2 & 3)

2. Class presentation:
Group 7: Questions 1 & 2.

3. Online class discussion 4

See Blackboard discussion board for topic.

UNIT 8
Aim:
To explore option pricing models
Literature:
1.
2.
3.
4.
5.

Chance & Brooks. 2010. Chapters 4 & 5.

Strong, R. No-Arbitrage Pricing.
Malliaris, A. G. The Black-Scholes Option Pricing Model.
Marshall, C.M. Monte Carlo Techniques in Pricing and Using Derivatives.
Balyeat, R.B. Measuring and Hedging Option Price Sensitivities
29

6. Black, F. and Scholes, M. 1971. "The pricing of options and corporate

liabilities", Journal of Political Economy, vol. 81, pp. 637-654;
FOCUS AREAS

The concept of an option pricing model

The one- and two-period binomial option pricing models
Explanation of the establishment and maintenance of a risk-free hedge
Illustration of how early exercise can be captured
The extension of the binomial model to any number of time periods
Alternative specifications of the binomial model
The Black-Scholes-Merton option pricing model
The relationship of the models inputs to the option price
How to adjust the model to accommodate dividends and put options
The concepts of historical and implied volatility
Hedging an option position
Monte Carlo Techniques in Pricing and Using Derivatives

After completing this unit a student should be able to answer the

following questions:
1. Use a one-period binomial model to price a call and put option.
2. Illustrate how a hedged portfolio is created under the one-period model.
3. Explain how arbitrage will be undertaken if a call is either under- or overpriced
in the one-period model.
4. Use a two-period binomial model to price a call and put option.
5. Illustrate how a hedged portfolio is created under the two-period model.
6. Explain how arbitrage will be undertaken if a call is either under- or overpriced
in the two-period model.
7. How does the binomial model allow for early exercise?
8. How does the binomial model allow for dividends?
9. How does the binomial model adjust for foreign currency options?
10.
How does the binomial model allow for multiple periods?
11.
How does the binomial model allow for increasingly smaller time periods
within a fixed option life?
12.
What assumptions underlie the Black-Scholes-Merton call option pricing
model?
13.
How is the price of a European call option determined according to the
BSM option pricing equation?
14.
How can the price of a European put be calculated?
15.
Interpret the following Greek sensitivity measures:
a. Delta
b. Theta
c. Vega
d. Rho
e. Gamma

30

16.
How is the price of a European call and put option determined according
to the BSM option pricing equation in the presence of dividend payments? How
is it adjusted for currency options?
17.
Why do option traders prefer to use the binomial model to price American
options?
18.
What role does volatility play in option pricing? How important is implied
volatility in this regard?
19.
How can risks related to options be managed?
20.
Are there instances when the BSM model may not hold?
21.
Why are Monte Carlo Techniques also used to price options when the
binomial and BSM models already exist?

Assessment:
(Part of assessment mark):
1. Blackboard self-test 6:
Chapter 4: Binomial Option pricing

2. Blackboard self-test 7:
Chapter 5: Black Scholes

(Continuous assessment)
1. Bring to class:

Practical: Monte Carlo Simulation: Exotic options

UNIT 9
Aim:
To explain and apply option payoffs and strategies
Literature:
1. Chance & Brooks. 2010. Chapters 6 & 7.
2. Mayhew, S. Option Strategies.
3. Hull, J.C. 2009. Options, Futures and other derivatives. 7th edition.
Chapter 10.
FOCUS AREAS

Examining risk/return related to option strategies

Basic and combination strategies.
31

Strategy outcomes and exercise price.

Strategy outcomes and holding period.

After completing this unit a student should be able to answer the

following questions:
1. Why trade options and option strategies? ((2) pp. 503-505, (1) p. 226)
2. Why does an options value at expiration differ from its value before expiration?
Why is it easier to determine the value of an option at expiration than before
expiration?
3. Explain the value of a call and put option on the day of maturity. Compare this
to the profit/loss if the option is kept till maturity.
4. Why is the options market said to be a zero sum game?
5. Indicate how the following spreads and combinations are created:
a. Long and short calls and puts
b. Covered calls
c. Protective puts
d. Synthetic forwards
e. Synthetic lending and borrowing
f. Synthetic calls and puts
g. Bull and bear spreads with calls
h. Bull and bear spreads with puts
i. Box spreads
j. Long and short cylinders
k. Collars
l. Straddles, strangles, strips, and straps
m. Butterflies, condors, and seagulls
n. Ratio spreads
o. Calendar spreads
6. Explain under what circumstances (expectations) each of the combinations in
the previous question will be created? What are the advantages and
disadvantages of each strategy? What are the payoffs and profits/losses at
expiration?

Assessment:
(Part of assessment mark):
1. Blackboard self-test 8:
Complete before class session starts (Chance, chapters 6 & 7)

(Continuous assessment)
1. Bring to class:
Practical: Using option strategy software

32

UNIT 10
Aim:
To explain and apply derivatives on interest rates rather
than assets
Literature:
1. Chance & Brooks. 2010. Chapter 13.
2. Byers, S. Using Derivatives to Manage Interest Rate Risk
3. Faure, P. 2011. Is the repo a derivative? Journal compilation, African Centre for
Economics and Finance.

FOCUS AREAS

Forward rate agreements

Interest rate futures
Interest rate options
Interest rate swaps
33

After completing this unit a student should be able to answer the

following questions:
1. Explain and illustrate how FRAs and interest rates futures, options and swaps
can be used for hedging purposes in particular, but also speculation purposes.

Assessment:
1. Blackboard self-test 9.
Complete before class session starts (Chance, chapter 13)

2. Class test
Test covers chapter 13

3. Online class discussion 5

See Blackboard discussion board for topic and due date.

13. WEBPORTAL FOR STUDENTS

All registered students at the university have access to the student portal on
the webpage of the university. All kinds of information that you need can be
found here. The portal is arranged according to three categories:
Studying at the UFS
Here you will find all the important information that a student would require
about studying at the UFS. So click on this tab when you need to find out
about admission requirements, financial aid, the Library, the module and
venue timetable and very importantly registration information.
Student life
In the student life section we bring you whats what on campus activities.
Find out what you need to know about all the services offered to students
such as Kovsie Counselling, Kovsie Health and Kovsie Sport. Come and
investigate KOVSIE Rag, the IRAWA, all the campus associations or even
scope out the SRC.
Student self-service
The student self-service is your one stop personalized access to all you need
to know about yourself. Using your student number as a log in, you can
access your proof of registration, your examination timetable & results, your
study records and even your internet billing account.

34

Go to the student portal by accessing the webpage of the university

(www.ufs.ac.za) and then click Students.

35

14. I-LEARN (Blackboard)

HOW DO I GET STARTED?
Firstly, you need a NOVELL User ID and password to be able to log in on the
University network. You also need an I-LEARN User ID and password.
WHAT SHOULD I DO?
1. You may register yourself as a user of the university network (Novell) at
the computer labs on campus (take your student card with you). The
assistants at the computer lab will assist you in logging on to the university
network for the first time. Try to do this as soon as possible. The User ID
activation process is described below.
2. When you are registered for a subject, you will automatically be registered
as an I-Learn user if your subject is presented on I-Learn. This process
happens automatically. When you log on to I-Learn for the first time, you
must use your student number as a User ID and password. You can
change your password after your first login if you wish to do so.
Passwords must contain at least 6 characters (alphabetical and numerical).
If you are still unable to log on to I-Learn, please consult the I-Learn
Helpdesk (Phone: 051-401 9452 or visit the helpdesk in the computer lab).
1. LOG ON TO THE UNIVERSITY NETWORK WITH NOVELL:
The Novell User ID and password will allow you to gain access to the University
of the Free States network and is usually the first step when working on the
computer.
Log on to the university network with Novell

STEPS TO LOG ON TO NOVELL:

Note the Novell Client Login Window below
Make sure the Location is STUDENT
Enter your student number at Username
Enter your password at Password:
o Passwords must be at least 6 characters long
o Can be alpha-numeric (letters and numbers, e.g. jan2004)
o Must not contain spaces, or -s and must be in lower case
36

o WRITE DOWN YOUR PASSWORD AND KEEP IT IN A SAFE PLACE (FOR

YOUR EYES ONLY!)
IMPORTANT NOTE!!
You will automatically be prompted on a monthly basis (via a message on the
computer screen) to change your password. IT IS CRUCIAL TO REMEMBER YOUR
PASSWORD. THEREFORE, CHOOSE A PASSWORD THAT YOU WILL REMEMBER
AND THAT MAKES SENSE TO YOU.
2. LOG ON TO I-LEARN:
You need your I-Learn User ID and password to log on to I-Learn. As
explained already, you must use your student number as a User ID and
password when you log on to I-Learn for the first time. You can change your
password after your first login if you like to.
HOW DO I LOG ON TO I-LEARN?
First of all, you need to access the Universitys homepage. The URL is:
http://www.ufs.ac.za. Click on the Internet Explorer icon to automatically go to
the Universitys website (). Then, click on Students and select I-LEARN
(Blackboard) (). Enter your username and password on the Blackboard log in
page (screen 3) to login to Blackboard. All the modules that you are registered
for will automatically appear on the screen once you have logged in.
SCREEN 1

www.ufs.ac.za

37

SCREEN 2

Click on I-Learn (Blackboard)

SCREEN 3

Username: student number

Password: student number (you can
change your password)

38

Enter your student number and password to login to Blackboard. Screen 4 will
appear, indicating all the courses that you are registered for, as well as recent
announcements and calendar entries that apply to your courses.
SCREEN 4

Organisations/Groups

Courses

Recommended software

3 Log off when finished:

Please remember to always log off to ensure no one else uses your account
(see below):
When you have finished working on Blackboard, you need to log off
Click on Log out at the top of the Blackboard site.

39

Log out

WHAT HAPPENS IF I FORGET MY NOVELL OR BLACKBOARD PASSWORD?

It is important NOT to forget the password. If this happens, you need to go to
the computer lab and ask for assistance.
If you cannot access your NOVELL account: The lab assistants will be
able to reset your password.
If you cannot access BLACKBOARD: Consult the i-learn helpdesk in the
library or phone the helpdesk (051-401 9452)
WHERE IS THE COMPUTER LABS LOCATED?
The labs are located at the Student Centre and on level 3 & 6 in the UFS Sasol
Library.
COMPUTER LAB TIMES:
Lab at Student Centre:
Monday to Thursday 07:00 22:30
Friday 07:00 21:00
Saturday 09:00 16:30
Sunday 09:30 16:30
Public Holidays 09:00 18:00
Times will also vary during vacation periods
Labs at the UFS Sasol Library (Level 3 & Level 6):
Level 6: Monday to Friday 08:00 21:00 (except Wednesdays: open at
9:00)
Level 3: Monday to Friday 08:00 22:00 (except Wednesdays: open at
9:00)
Saturday 09:00 13:00
The lab will be closed on all University recognised public holidays

Times will also vary during vacation periods

15. MOBILE LEARNING (If applicable)
Technical requirements of cellphone to participate in mobile learning:
40

Any smart phone with a 64K simcard

HTC, Samsung and LG users: Download the Opera Mini application (free
of charge)
To download Opera Mini:
Step 1: Go your web browser and enter: m.opera.com
Step 2: Follow the prompts to install the software
Step3: Find Opera Mini in your Java applications folder.

Please keep the following in mind when you register:

Use your own cell phone number with student registration
If your cell phone number changes, you need to visit the helpdesk to
update this information

If you need help:

Go the E-Learning helpdesk at the Computer Lab
Contact Information:
E-mail: ehelpdesk@ufs.ac.za
Telephone Number: (051) 401-9452
How to access the mobile site of the university:
1. Go to mobi.ufs.ac.za (without the http as well as the //)
2. To log into the site use your student number as your username and
password

3. The modules you are enrolled for will appear once you have logged in.
Click on the one you want to view.

41

4. The following icons will help you navigate the mobi site:

42