This unit is designed to further students understanding of futures and options contracts and their use in managing risk. It builds upon material covered in FINM1001: Money, Markets and Finance. The unit provides an overview of options, futures, forwards and swaps on a range of underlying commodities including stocks, interest rates, foreign exchange as well as more exotic instruments such as weather and electricity derivatives. The models used for pricing these instruments will be covered as well as techniques used for risk management. At the completion of this unit students are expected to have a basic understanding of how derivative instruments are priced, traded and used.

At the completion of this unit students are expected to have a good understanding of how derivative instruments are priced, traded and used.

In-class quizzes (best 5 of 6) -  20%

Assignment or Mid-semester examination - 25%

Final examination - 55%

To obtain an automatic pass grade in this unit you must obtain 50% or more as an aggregate mark on the assessment.

The assessment for this course for Summer School, 2010, will be different from the standard semester offerings. Summer School proposed assessment is as follows:

• In-Class Quizzes - 25%
• Final Examination - 75%
  

Three contact hours per week plus private study time.

FINM1001 Money, Markets and Finance.

See Course Website:  http://ecocomm.anu.edu.au/courses/course.asp?code=FINM2002

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=FINM2002