FINANCIAL INSTRUMENTS

FIN2FII

Not currently offered

Credit points: 15

Subject outline

This subject is focussed on the operation of financial markets and the pricing of the instruments. A particular focus is given to the money market and the bond, futures, and options markets. The instruments examined range from simple deposits, CDs, bills, FRAs, futures, options and bonds. The market background and use for each instrument is given as a structure within which to see the financial calculations used to price each instrument. Interest rate swaps and options are also introduced with examples of their application, trading strategies and pricing concepts considered.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorHayat Khan

Available to Study Abroad StudentsYes

Subject year levelYear Level 2 - UG

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjects FIN22FMI

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsFinancial markets, institutions and moneyPrescribedKidwell, D., Brimble, M., Basu, A.Lenten, L., Thomson, D. 20143RD. EDN. JONH WILEY & SONS, MILTON

Graduate capabilities & intended learning outcomes

01. understand and present an overview of the Australian financial system as it relates to real-world events

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

02. distinguish and describe verbally the various types of institutions in the system, emphasising both banks and non-bank intermediary types

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. relate and discuss with others the determination of interest rates as #prices# of various financial instruments, via calculation and description

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. appreciate and restate the types of instruments available in the so-called #traditional# markets, including various equity and debt markets

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. demonstrate developed knowledge of the emerging markets and financial engineering involved with derivative instruments and foreign exchange;

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

06. To be able to analyse the role of sustainability in the finance sector as evidenced by tutorial discourse.

Activities:
Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment
Related graduate capabilities and elements:
Inquiry and Analytical Skills (Inquiry/Research)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

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