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.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorDoureige Jurdi

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 2 - UG

Available as ElectiveNo

Learning ActivitiesN/A

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesFIN2FIN OR FIN1FOF

Co-requisitesN/A

Incompatible subjectsFIN3FDR

Equivalent subjectsFIN3FDR

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Readings

Options, Futures and other Derivatives.

Resource TypeBook

Resource RequirementPrescribed

AuthorJohn C Hull

YearN/A

Edition/VolumeN/A

PublisherPEAR COLLEGE DIV

ISBNN/A

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/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

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne (Bundoora), 2020, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

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

Tutorial Week: 11 - 22
One 1.00 h 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 examinationN/AN/AN/ANo10 SILO1, SILO2, SILO3, SILO4, SILO5
One 2-hour final examinationN/AN/AN/ANo50 SILO1, SILO2, SILO3, SILO4, SILO5
Online and/or in class formative assessment tasks (500-words equivalent)N/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
1,000-word individual assignmentN/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

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

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

Lecture Week: 31 - 43
One 2.00 h 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 examinationN/AN/AN/ANo10 SILO1, SILO2, SILO3, SILO4, SILO5
One 2-hour final examinationN/AN/AN/ANo50 SILO1, SILO2, SILO3, SILO4, SILO5
Online and/or in class formative assessment tasks (500-words equivalent)N/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
1,000-word individual assignmentN/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

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

Tutorial Week: 11 - 22
One 1.00 h 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 examinationN/AN/AN/ANo10 SILO1, SILO2, SILO3, SILO4, SILO5
One 2-hour final examinationN/AN/AN/ANo50 SILO1, SILO2, SILO3, SILO4, SILO5
Online and/or in class formative assessment tasks (500-words equivalent)N/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
1,000-word individual assignmentN/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2020, Study period 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

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

Tutorial Week: 31 - 42
One 1.00 h 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 examinationN/AN/AN/ANo10 SILO1, SILO2, SILO3, SILO4, SILO5
One 2-hour final examinationN/AN/AN/ANo50 SILO1, SILO2, SILO3, SILO4, SILO5
Online and/or in class formative assessment tasks (500-words equivalent)N/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6
1,000-word individual assignmentN/AN/AN/ANo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6