MAF713 - Derivatives and Financial Risk Management

Unit details

Year:

2024 unit information

Enrolment modes:Trimester 1: Burwood (Melbourne), Online
Credit point(s):1
EFTSL value:0.125
Unit Chair:Trimester 1: Wei Opie
Previously:Futures, Options and other Derivatives
Prerequisite:

MAF759

Corequisite:Nil
Incompatible with: MAF308
Typical study commitment:

Students will on average spend 150 hours over the teaching period undertaking the teaching, learning and assessment activities for this unit.

This will include educator guided online learning activities within the unit site.

Educator-facilitated (scheduled) learning activities - on-campus unit enrolment:

1 x 3 hour on-campus seminar (recordings provided) each week.

Educator-facilitated (scheduled) learning activities - online unit enrolment:

1 x 3 hour recorded seminar each week and 1 x 1 hour online seminar in Weeks 3, 6 and 9.

Content

The unit introduces students to the mechanics of the main categories of derivative securities including options, futures, forwards and swaps on instruments such as stocks, stock indices, currencies and interest rates. The unit focuses on the theoretical framework of the different pricing models for derivatives and the use of derivatives for hedging, speculating and arbitraging purposes. It also covers some case studies on corporate disasters associated with derivative usage.

ULO These are the Learning Outcomes (ULO) for this unit. At the completion of this unit, successful students can: Deakin Graduate Learning Outcomes
ULO1

Critically analyse key factors affecting option and futures prices.

GLO1: Discipline-specific knowledge and capabilities

ULO2

Explain the link between various derivative instruments.

GLO1: Discipline-specific knowledge and capabilities

ULO3

Apply appropriate pricing models to a range of derivative instruments and identify arbitrage opportunities produced by mispricing.

GLO1: Discipline-specific knowledge and capabilities
GLO4: Critical thinking

ULO4

Identify, construct and analyse optimal hedging strategies using derivatives.

GLO1: Discipline-specific knowledge and capabilities
GLO4: Critical thinking
GLO5: Problem solving

Assessment

Assessment Description Student output Grading and weighting
(% total mark for unit)
Indicative due week
Assessment 1: (Individual) Multiple Choice Quiz (Online)

60 minutes 

10% Week 4
Assessment 2: (Individual) Case Study Report 2500 words 45% Week 8
Assessment 3: (Individual) Report (Analytical)  2000 words 45%

Week 11

The assessment due weeks provided may change. The Unit Chair will clarify the exact assessment requirements, including the due date, at the start of the teaching period.

Hurdle requirement

Hurdle requirement: Achieve at least 50% of the marks available on the Assessment 3 to evidence a minimum proficiency in the aligned finance discipline learning outcomes included in this unit.

Learning Resource

The texts and reading list for the unit can be found on the University Library via the link below: MAF713 Note: Select the relevant trimester reading list. Please note that a future teaching period's reading list may not be available until a month prior to the start of that teaching period so you may wish to use the relevant trimester's prior year reading list as a guide only.

Unit Fee Information

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