DERIVATIVE SECURITIES

FIN2FDR

2021

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-ordinatorVan Vu

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 2 - UG

Available as ElectiveNo

Learning ActivitiesLecture, tutorial questions, quiz, mid-term test, assignment, and final exam

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 TypePrescribed

Resource RequirementN/A

AuthorJohn C Hull

YearN/A

Edition/VolumeN/A

PublisherPEAR COLLEGE DIV

ISBN9781292212890

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

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), 2021, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 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.

TutorialWeek: 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 examination

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4, SILO5

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

N/AOtherIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AAssignmentIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2021, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 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.

TutorialWeek: 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 examination

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4, SILO5

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

N/AOtherIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AAssignmentIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Sydney, 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

TutorialWeek: 30 - 42
One 1.00 h tutorial per week on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

1-hour mid-semester formative examination

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4, SILO5

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

N/AOtherIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AAssignmentIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

Vietnam (Hanoi University), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorVan Vu

Class requirements

LectureWeek: 30 - 42
One 2.00 h lecture other recurrence on weekdays during the day from week 30 to week 42 and delivered via face-to-face.

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

1-hour mid-semester formative examination

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5

One 2-hour final examination

N/ACentral examIndividualNo50 SILO1, SILO2, SILO3, SILO4, SILO5

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

N/AOtherIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6

1,000-word individual assignment

N/AAssignmentIndividualNo20 SILO1, SILO2, SILO3, SILO4, SILO5, SILO6