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MAF713 - Futures, Options and other Derivatives

Year:

2020 unit information

Important Update:

Classes and seminars in Trimester 2, 2020 will be online.

Last updated: 2 June 2020

Enrolment modes:Trimester 2: Burwood (Melbourne), Cloud (online)
Credit point(s):1
EFTSL value:0.125
Unit Chair:Trimester 2: Wei Opie
Prerequisite:

MAF759

Corequisite:Nil
Incompatible with:

Nil

Typical study commitment:

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

Scheduled learning activities - campus:

1 x 3 hour seminar per week

Scheduled learning activities - cloud:

Online independent and collaborative learning activities including 3 scheduled online seminars

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.

 

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. Comprehend the link between various derivative instruments.

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

ULO2

Apply appropriate pricing models to a range of derivative instruments.

GLO1: Discipline-specific knowledge and capabilities
GLO5: Problem solving

ULO3

Understand the key aspects of hedging with derivatives. Identify, construct and analyse optimal hedging strategies.

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

ULO4

Work constructively in a team to solve complex problems related to derivative securities.

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

 

These Unit Learning Outcomes are applicable for all teaching periods throughout the year

Assessment

:
Assessment Description Student output Grading and weighting
(% total mark for unit)
Indicative due week 
Assessment 1: (Individual) - Online test   10% Week 5
Assessment 2: (Group 2-3 students) - Written assignment (analytical quantitative) 4,000 words 30% Week 9
Examination 2-hours 60% Exam period

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 examination

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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