DERIVATIVE SECURITIES

FIN5DER

2020

Credit points: 15

Subject outline

In this subject you will focus on the pricing and valuation of derivative securities, and their use in risk management. Forward and swap contracts, together with futures and, options are the main securities considered. You will also examine in depth the role of derivative securities in risk management.

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 5 - Masters

Exchange Students: No

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: N/A

Co-requisites: N/A

Incompatible subjects: N/A

Equivalent subjects: N/A

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

Analysis of derivatives for the CFA program.

Resource Type: Book

Resource Requirement: Recommended

Author: Chance, D.M.

Year: 2003

Edition/Volume: N/A

Publisher: AIMR

ISBN: N/A

Chapter/article title: N/A

Chapter/issue: N/A

URL: N/A

Other description: N/A

Source location: N/A

Options, futures and other derivatives

Resource Type: Book

Resource Requirement: Prescribed

Author: Hull. J

Year: N/A

Edition/Volume: 8TH EDN

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

Intended Learning Outcomes

01. Compare and contrast the characteristics of derivative securities and derivative markets

02. Demonstrate an understanding of financial theories and analytical skills used to price and value derivative securities

03. Demonstrate analytical and practical skills in trading derivative securities and using derivative securities to manage the risk exposure of an asset or a portfolio

Melbourne (Bundoora), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

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

TutorialWeek: 32 - 43
One 1.00 hour tutorial per week on weekdays during the day from week 32 to week 43 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
Online and/or in-class assessment tasksEquivalent to 500 words	N/A	N/A	N/A	No	10	SILO1, SILO2
One hour formative examinationEquivalent to 1000 words	N/A	N/A	N/A	No	10	SILO1, SILO2, SILO3
Two hour final examinationEquivalent to 2000 words	N/A	N/A	N/A	No	50	SILO1, SILO2, SILO3
Individual assignmentEquivalent to 2000 words	N/A	N/A	N/A	No	30	SILO1, SILO2, SILO3