Postgraduate RMI-MFIN2081-2019

Options, Futures and Risk Management

Construct a firm picture of the purpose of derivative instruments like options, futures and swaps. See how they can be applied to portfolio management and risk mitigation. Play with innovative financial processes and complex risk management tools.

From

$4,320 $4,570

Your upfront cost: $0

International student?

2019

Duration

14 weeks

Student rating

Study method

100% online

Available loans

FEE-HELP

Assessments

Subjects may require attendance

Prior study

Not required

Study terms

15 Jul 2019

Australia's largest dual-sector institute, offering both TAFE and higher education, RMIT University proudly delivers work-related education and practical research relevant to current business and community needs. More than 60,000 students study with RMIT, and many of their degrees are available through Open Universities Australia.

Subject details

What you'll learn

On successful completion of this subject you will:

CLO1: Explain and evaluate various over-the-counter and exchange-traded derivatives and their market mechanics.
CLO2: Use arbitrage arguments in fair value estimation and designing hedging with derivative products.

CLO3: Compare and contrast the relative strengths and weaknesses of option pricing models and analyse common strategies involved in trading options.

CLO4: Apply derivative products to portfolio management and risk mitigation.

CLO5: Appraise how risk in quantified by banks and other institutions

Topics covered

- Introduction
- Forward and Futures Markets
- Forwards and Futures Pricing Principles
- Hedging with Forward and Futures Contracts
- Option Markets and Pricing – Part A
- Option Markets and Pricing – Part B
- Options Trading Strategies
- Advanced Option Trading Strategies
- Value at Risk
- Swaps – Part A
- Swaps – Part B
Study resources
- Instructional methods
  - Discussion forum/Discussion Board
  - Online assignment submission
  - Online Quizzes/Tests
- Online materials
  - Printable format materials
  - Online Assessment

Entry requirements

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

Core

RMI-MFC-MAS-2019

Special requirements

No special requirements

Description

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

This subject provides a detailed understanding of how derivative instruments are used to enhance returns and manage risks. The subject is practically oriented, encompassing quantitative theoretical developments, the application of pricing to the business environment, and the development of quantitative financial skills. Students will explore innovative financial products and financial processes in equities, currencies, interest rates and commodities along with complex risk management tools.

Assessments

Test (Linked CLOs: 1 - 5) (20%%)
Assignment (Linked CLOs: 2, 3, 4) (40%%)
Invigilated Exam (Linked CLOs: 1 - 5) (40%%)

Textbooks

Current study term (15 Jul 19 to 20 Oct 19)

Textbook information is pending.

Related degrees

postgraduate RMI-MFC-MAS-2019

Master of Finance