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.

School: La Trobe Business School (Pre 2022)

Credit points: 15

Subject Co-ordinator: Darren Henry

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 2 - UG

Available as Elective: Yes

Learning Activities: Lecture, tutorial, pre-tutorial quizzes, test your knowledge MCQs, Term Assignment

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: N/A

Co-requisites: N/A

Incompatible subjects: N/A

Equivalent subjects: FIN22FMI

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

Financial markets, institutions and money

Resource Type: Book

Resource Requirement: Prescribed

Author: Kidwell, D., Brimble, M., Basu, A.Lenten, L., Thomson, D.

Year: 2014

Edition/Volume: 3RD EDN

Publisher: JONH WILEY & SONS, MILTON

ISBN: 978073036352

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 - Research and Evidence-Based Inquiry

Intended Learning Outcomes

01. Understand and present an overview of the Australian financial system as it relates to real-world events
02. Distinguish and describe verbally the various types of institutions in the system, emphasising both banks and non-bank intermediary types
03. Relate and discuss with others the determination of interest rates as prices of various financial instruments, via calculation and description
04. Appreciate and restate the types of instruments available in the so-called traditional markets, including various equity and debt markets
05. Demonstrate developed knowledge of the emerging markets and financial engineering involved with derivative instruments and foreign exchange
06. To be able to analyse the role of sustainability in the finance sector as evidenced by tutorial discourse.
Subject not currently offered - Subject options not available.