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MAF308 - Derivative and Fixed Income Securities

Year:

2022 unit information

Enrolment modes:Trimester 1: Burwood (Melbourne), Online
Trimester 2: Burwood (Melbourne), Online
Credit point(s):1
EFTSL value:0.125
Unit Chair:Trimester 1: Peipei Wang
Trimester 2: Peipei Wang
Prerequisite:

MAF101 and MAF203

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 2 hour class, 1 x 1 hour seminar per week

Scheduled learning activities - cloud:

Online independent and collaborative learning activities including 3 scheduled online seminars

From T2 2022:
Online independent and collaborative learning activities including 1 x 1 hour weekly scheduled online seminars 

Content

This unit focuses on the conceptual aspects concerning the mechanics and pricing of the three main categories of derivative securities options, forwards/futures and swaps. Specific topics that will be covered include basic pricing concepts, arbitrage and trading strategies, Black-Scholes analysis, the Binomial model and hedging principles.

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

Explain the characteristics of financial derivatives and their markets

GLO1: Discipline-specific knowledge and capabilities

ULO2

Explain the law of one price and mechanics of no arbitrage and apply them in pricing financial derivatives

GLO4: Critical thinking
GLO5: Problem solving

ULO3

Evaluate investments in forwards, futures, options and swaps contracts

GLO5: Problem solving

ULO4

Evaluate and communicate financial information professionally using appropriate mathematical and communication tools

GLO1: Discipline-specific knowledge and capabilities
GLO2: Communication|
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) Multiple Choice Quiz (Online) 30 minutes 10% Week 5
Assessment 2: (Individual) Report (analytical) 2500 words 30% Week 9
Examination (Closed Book) 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: MAF308 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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