Options, Futures and Risk Management - 2017

To enrol in this unit, you must be accepted into a course from the provider. Read before you start

Unit summary

MFIN2081

  • Level of Study: Postgraduate
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: No
  • Duration: 13 weeks
  • Government loans available: FEE-HELP
  • Availability for 2016: Sess 3
  • Availability for 2017: Sess 2
  • Assessment: Assignment - Linked CLOs: 2, 3, 4, 5 (20%) , Invigilated Exam - Linked CLOs: 1, 2, 3, 4, 5 (50%) - Learn more

Unit provided by

or
2017 Fees
AUD$
Domestic 4,080.00
International 4,330.00

This unit was previously known as Risk Management and Financial Engineering.

This unit provides a detailed understanding of how the latest derivative instruments such as Forward, Options, Futures and Swaps are used not only to enhance returns but also as solid risk management tools. The unit is practically oriented, encompassing strong quantitative theoretical developments, the pricing of new financial instruments and their application in a real world environment. The students will explore innovative financial products and financial processes in the major segment of equities, currencies, interest rates and commodities along with updated complex risk management tools.

On successful completion of this unit you will:

  1. CLO1: Be able to analyse the financial products and the markets in which they trade, including, Futures and forwards, Equity options, swaps, and other derivatives, Commodities, Currencies, Corporate bonds and interest rates
  2. CLO2: Have an understanding of arbitrage arguments and hedging related to these derivative products and fair value evaluation using Black Scholes Model, Binomial Model and Trinomial model. Understanding of the Greek Letters for risk mitigation and portfolio rebalancing
  3. CLO3: Have a detailed understanding on how Derivative Synthetics Position are created, and application of equity derivatives (Equity Options, Stock Index Futures, Equity Swap), Currency Derivatives, Interest Rate derivatives, Credit Derivatives and Commodities, for Trading, Hedging and Arbitrage Transactions
  4. CLO4: Be able to demonstrate deeper understanding on how derivative products can be used for portfolio management and risk mitigation such as portfolio insurance and dynamic delta hedging and how various Hedge Ratios are calculated and applied
  5. CLO5: Have an understanding how derivative instruments can be used in Credit Risk Management and the building up of complex Structured products such as Equity Linked Notes, Exotic Options Such as Asian Options, Knock Out Options, Look back options. How to create a global arbitrage position with the SPX combos.
  • Assignment — Linked CLOs: 2, 3, 4, 5 (20%)
  • Invigilated Exam — Linked CLOs: 1, 2, 3, 4, 5 (50%)
  • Quizzes — Linked CLOs: 1, 2 (30%)
For more information on invigilated exams see Exams and results

There are no prerequisites for this unit.

  • Broadband access

In order to enrol in this unit, you must be accepted into one of the following courses:

Please visit the course details page and read the Requirements tab for more information about eligibility.

This unit addresses the following topics.

NumberTopic
1Review of Derivatives
2Futures and Forward
3Interest Rate Markets
4Swaps
5Options
6Using Derivatives in Portfolio Management
7Introduction to Binomial Trees
8Executive Stock Options and Options on Stock Indices, Currencies and Futures
9Greek Letters
10Credit Risk
11Credit Derivatives
12Derivatives Mishaps and Review

This unit is delivered using the following methods and materials:

Instructional Methods

  • Discussion Forum/Discussion Board
  • Online Quizzes/Tests
  • Online assignment submission

Online materials

  • Online Assessment
  • Printable format materials

This unit is a core requirement in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbook information for this unit is currently being updated and will be available soon. Please check back regularly for updates. Alternatively, visit the The Co-op website and enter the unit details to search for available textbooks.

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