FINM8009 Derivative Instruments and Markets

Offered By	School of Finance, Actuarial Studies & Appl Stats
Academic Career	Graduate Coursework
Course Subject	Financial Management
Offered in	Second Semester, 2011 and Second Semester, 2012
Unit Value	6 units
Course Description	This course aims to provide an introduction into the pricing and use of derivative instruments, portfolios of derivative securities and combinations of derivatives and other financial assets. These are important topics for portfolio managers both in terms of understanding the instruments and correct application of the contracts.
Learning Outcomes	By the end of the course, students are expected to have attained proficiency in the following areas: Understanding of the motives, reasons and explanations for corporate hedging activity Knowledge of key financial building blocks, used in constructing complex derivative instruments (eg futures, forwards, options and swaps) Analysis of payoffs and strategies involved in trading derivative instruments and combinations of derivatives Application of the pricing of individual and combinations of derivative securities Use and benefits of derivatives in a portfolio context.
Indicative Assessment	Presentation 10% Assignment 1 (due in week 8) 10% Assignment 2 (due in week 12) 10% End of semester examination 70% TOTAL 100%
Workload	10 hours per week for 13 weeks = 130 hours
Course Classification(s)	AdvancedAdvanced courses are designed for students having reached 'first degree' level of assumed knowledge, which provide a deep understanding of contemporary issues; or 'second degree' and higher levels of knowledge; or for transition to research training programs. and SpecialistSpecialist courses are designed for students having reached 'first degree' level of assumed knowledge, which provide for the acquisition of specialist skills; or 'second degree' and higher level of knowledge; or for transition to research training programs; or knowledge associated with professional accreditation.
Areas of Interest	Finance
Eligibility	At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree with at least one year of university level study in quantitative analysis, including basic mathematics and data analysis techniques.
Assumed Knowledge and Required Skills	Advanced courses in corporate finance, investments, financial intermediation and markets.
Requisite Statement	FINM7007 Applied Corporate Finance, FINM7008 Applied Investments, FINM7041 Applied Derivatives and FINM7044 Applied Valuation
Prescribed Texts	See: http://ecocomm.anu.edu.au/courses/outline/FINM8009.pdf
Preliminary Reading	See Course Outline.
Indicative Reading List	See Course Outline.
Programs	Graduate Certificate in Actuarial Studies, Graduate Certificate in Actuarial Studies, Master of Commerce, Master of Commerce, Master of Commerce, Master of Commerce, and Master of Finance
Other Information	For further information please refer to Course Outline.
Academic Contact	See Course Outline.

The information published on the Study at ANU 2011 website applies to the 2011 academic year only. All information provided on this website replaces the information contained in the Study at ANU 2010 website.