Options, Futures and Risk Management
PostgraduateRMI-MFIN20812020
Course information for 2020 intake
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.
Enrolments for this course are closed, but you may have other options to start studying now. Book a consultation to learn more.
- Study method
- 100% online
- Assessments
- 100% online
- Entry requirements
- Part of a degree
- Duration
- 14 weeks
- Loan available
- FEE-HELP available
Options, Futures and Risk Management
About this subject
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
- 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
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.
- Assessment Task 1: (Linked CLOs: 1, 2, 4) (20%)
- Assessment Task 2: (Linked CLOs: 2, 3, 4) (40%)
- Assessment Task 3 (Linked CLOs: 1, 2, 3, 4, 5) (40%)
For textbook details check your university's handbook, website or learning management system (LMS).
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Entry requirements
To enrol in this subject, you must be admitted into a degree.
Additional requirements
No additional requirements
Study load
- 0.125 EFTSL
- This is in the range of 10 to 12 hours of study each week.
Equivalent full time study load (EFTSL) is one way to calculate your study load. One (1.0) EFTSL is equivalent to a full-time study load for one year.
Find out more information on Commonwealth Loans to understand what this means to your eligibility for financial support.