MAF713 - Derivatives and Financial Risk Management
Unit details
Year: | 2024 unit information |
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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 |
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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 |
ULO4 | Identify, construct and analyse optimal hedging strategies using derivatives. | GLO1: Discipline-specific knowledge and capabilities |
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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