Options, Futures and Risk Management - 2018

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 2017: Sess 2
  • Availability for 2018: Sess 2
  • Assessment: Invigilated Exam - Final Exam (50%) , Proposal - Research Proposal (20%) - Learn more

Unit provided by

or
2018 Fees
AUD$
Domestic 4,200.00
International 4,450.00

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

The unit examines derivative contracts and their use in managing financial risk. It provides you with the knowledge and skills to assess major classes of derivative securities - options, futures and forward contracts, how they are constructed, how they work and how they are valued and priced. You will explore how options and futures can be used for hedging risk in the process of risk management and portfolio construction.

On successful completion of this unit you will:

  1. Evaluate 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. Consider arbitrage arguments and hedging related to derivative products and fair value evaluation using a variety of advanced financial analysis techniques
  3. Appraise how Derivative Synthetics Position are created, and the 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. Evaluate the use of derivative products for portfolio management and risk mitigation such as portfolio insurance and dynamic delta hedging and how various Hedge Ratios are calculated and applied
  5. Argue how derivative instruments can be used in Credit Risk Management and the building of complex structured products such as Equity Linked Notes, Exotic Options, e.g. Asian Options, Knock Out Options, Look back option. Create a global arbitrage position with the SPX combos.
  • Invigilated Exam — Final Exam (50%)
  • Proposal — Research Proposal (20%)
  • Research Essay — Research Report (30%)
For more information on invigilated exams see Exams and results

There are no prerequisites for this unit.

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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