2020 unit information
Classes and seminars in Trimester 2, 2020 will be online.
Last updated: 2 June 2020
Students will on average spend 150 hours over the teaching period undertaking the teaching, learning and assessment activities for this unit.
1 x 3 hour seminar per week
Online independent and collaborative learning activities including 3 scheduled online seminars
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:
Critically analyse key factors affecting option and futures prices. Comprehend the link between various derivative instruments.
GLO1: Discipline-specific knowledge and capabilitiesGLO4: Critical thinking
Apply appropriate pricing models to a range of derivative instruments.
GLO1: Discipline-specific knowledge and capabilitiesGLO5: Problem solving
Understand the key aspects of hedging with derivatives. Identify, construct and analyse optimal hedging strategies.
GLO1: Discipline-specific knowledge and capabilitiesGLO4: Critical thinkingGLO5: Problem solving
Work constructively in a team to solve complex problems related to derivative securities.
These Unit Learning Outcomes are applicable for all teaching periods throughout the year
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: achieve at least 50% of the marks available on the examination
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.
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