fin3fdr financial derivatives
FINANCIAL DERIVATIVES
FIN3FDR
2017
Credit points: 15
Subject outline
In recent years there has been a dramatic increase in the size and complexity of both the types of financial investments and the institutions which are involved in the markets for investment products. In order to reduce the risks associated with trading in these markets specialized markets for risk management called derivative markets have rapidly developed. Unfortunately in some cases these markets have increased rather than reduced the financial risks faced by individuals, corporations and even governments. The markets for financial derivatives have, in the words of Warren Buffett, become potential weapons of Financial Mass Destruction. This subject provides you with a roadmap which will help them to understand and effectively function in the world of Financial Derivatives. You will cover main types of financial derivatives such as forwards, futures, swaps, and options. The emphases is on how to price financial derivatives and how to use them in risk management.
SchoolLa Trobe Business School
Credit points15
Subject Co-ordinatorLily Nguyen
Available to Study Abroad StudentsYes
Subject year levelYear Level 3 - UG
Exchange StudentsYes
Subject particulars
Subject rules
Prerequisites FIN2FIN or FIN1FOF
Co-requisitesN/A
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditionsN/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Options, Futures and other Derivatives. | Prescribed | John C Hull | PEAR COLLEGE DIV |
Graduate capabilities & intended learning outcomes
01. Compare and contrast financial derivatives and their markets
- Activities:
- Lecture, tutorial questions, quiz, mid-term test, and final exam
02. Explain relevant financial theories and apply them to the pricing and valuation of financial derivatives.
- Activities:
- Lecture, tutorial questions, quiz, mid-term test, and final exam
03. Develop analytical and practical skills in trading financial derivatives and using financial derivatives to manage the risk exposure of an asset or a portfolio
- Activities:
- Lecture, tutorial questions, quiz, mid-term test, and final exam
Subject options
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Melbourne, 2017, Semester 1, Day
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorLily Nguyen
Class requirements
TutorialWeek: 11 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
LectureWeek: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| Mid-term exam: 90 minutes | 35 | 01, 02, 03 | |
| One 2-hour final examination | 50 | 01, 02, 03 | |
| one 45 minutes written quiz | 15 | 01, 02, 03 |