DERIVATIVE SECURITIES

FIN2FDR

2020

Credit points: 15

Subject outline

In recent years there has been a dramatic increase in the size and complexity of the types of investment securities, the markets in which they are traded, and the institutions which trade them. In order to reduce the risks associated with trading these investment securities, derivative securities, such as forwards, futures, swaps and options, have rapidly evolved. Unfortunately, in some cases these derivative securities have increased rather than reduced the financial risks faced by individuals, corporations and even governments. This subject provides you with a roadmap which will help you to understand derivative securities and derivative markets. Through this subject you will develop the skills of a financial risk manager to price derivative securities and to use them to define risk management strategies which meet the risk-reward objectives of different investors.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Doureige Jurdi

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 2 - UG

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: FIN2FIN OR FIN1FOF

Co-requisites: N/A

Incompatible subjects: FIN3FDR

Equivalent subjects: FIN3FDR

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Learning resources

Options, Futures and other Derivatives.

Resource Type: Book

Resource Requirement: Prescribed

Author: John C Hull

Year: N/A

Edition/Volume: N/A

Publisher: PEAR COLLEGE DIV

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

DISCIPLINE KNOWLEDGE AND SKILLS
INQUIRY AND ANALYSIS - Creativity and Innovation
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry
PERSONAL AND PROFESSIONAL - Adaptability and Self-Management
PERSONAL AND PROFESSIONAL - Ethical and Social Responsibility

Intended Learning Outcomes

01. Compare and contrast financial derivatives, their markets in different countries, and the risk and return characteristics of different types of financial derivatives.
02. Explain relevant financial theories and apply them to the pricing and valuation of financial derivatives.
03. Measure the exposure to market risk of investment securities and portfolios.
04. Demonstrate the hedging strategies employed by financial risk managers, to manage the exposure to market risk exposure of investment securities and portfolios, using appropriate digital tools and information services
05. Analyse and resolve ethical dilemmas associated with financial trading and the provision of investment advice
06. Define an industry engagement and job search plan, by exploring the range of opportunities to engage with alumni, finance professionals, employers of finance majors, and professional associations

Melbourne (Bundoora), 2020, Semester 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

LectureWeek: 10 - 22
One 2.00 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

TutorialWeek: 11 - 22
One 1.00 hour tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle%ILO*

1-hour mid-semester formative examination

N/AN/AN/ANo10SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/AN/AN/ANo50SILO1, SILO2, SILO3, SILO4, SILO5

Online and/or in class formative assessment tasks (500-words equivalent)

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Vietnam (Hanoi University), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

LectureWeek: 31 - 43
One 2.00 hours lecture other recurrence on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle%ILO*

1-hour mid-semester formative examination

N/AN/AN/ANo10SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/AN/AN/ANo50SILO1, SILO2, SILO3, SILO4, SILO5

Online and/or in class formative assessment tasks (500-words equivalent)

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 1, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

LectureWeek: 10 - 22
One 2.00 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

TutorialWeek: 11 - 22
One 1.00 hour tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle%ILO*

1-hour mid-semester formative examination

N/AN/AN/ANo10SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/AN/AN/ANo50SILO1, SILO2, SILO3, SILO4, SILO5

Online and/or in class formative assessment tasks (500-words equivalent)

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

LectureWeek: 31 - 42
One 2.00 hours lecture per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

TutorialWeek: 31 - 42
One 1.00 hour tutorial per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle%ILO*

1-hour mid-semester formative examination

N/AN/AN/ANo10SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/AN/AN/ANo50SILO1, SILO2, SILO3, SILO4, SILO5

Online and/or in class formative assessment tasks (500-words equivalent)

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AN/AN/ANo20SILO1, SILO2, SILO3, SILO4, SILO5, SILO6