FINM7041 Applied Derivatives

Offered By	Rsch Sch of Finance, Actuarial Studies & App Stats
Academic Career	Graduate Coursework
Course Subject	Financial Management
Offered in	First Semester, 2012, Second Semester, 2012, First Semester, 2013, and Second Semester, 2013
Unit Value	6 units
Course Description	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/FINM7006 (Foundations of Finance) and STAT7055 (Financial Statistics). FINM7041 provides an overview of options, futures, forwards and swaps on a range of underlying assets/commodities including stocks, interest rates, foreign exchange as well as more exotic instruments. The models used for pricing these instruments will be examined as well as techniques used for risk management.
Learning Outcomes	Upon successful completion of the requirements for this course, students will be able to: • Understand the types of assets/commodities that we use, including stocks, interest rates, foreign exchange as well as exotic instruments; • Define a range of derivative instruments (options, futures, forwards and swaps); • Understand and appreciate the application of derivative instruments (options, futures, forwards and swaps) to a range of underlying assets/commodities; • Critique the advantages and limitations of a range of derivative instruments (options, futures, forwards and swaps); • Utilize a variety of derivative trading strategies; • Apply various models to price forward, futures, swap and option contracts; and • Use these pricing models for risk management.
Indicative Assessment	Assessment items may vary each semester. Please check the current course outline for details: Assignments/Quizzes/Mid-semester Examination: 30/50% Final Examination: 50-70%
Workload	10 hrs per week
Course Classification(s)	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. and TransitionalTransitional courses are designed for students from a broad range of backgrounds and learning achievements, which provide for the acquisition of generic skills; or an informed understanding of contemporary issues; or fundamental knowledge for transition to Advanced or Specialist courses.
Areas of Interest	Finance
Eligibility	At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree
Assumed Knowledge and Required Skills	Introductory courses in both Accounting and Finance
Requisite Statement	Pre-requisites: STAT7055 Financial Statistics, FINM7006 Foundations of Finance and BUSN7008 Financial Statements and Reporting
Prescribed Texts	See Course Website
Preliminary Reading	See Course Website
Indicative Reading List	See Course Website
Programs	Graduate Certificate in Financial Management, Master of Business, Master of Business, Master of Commerce, Master of Commerce, Master of Finance, and Master of Financial Management
Other Information	For further information please refer to Course Website

The information published on the Study at ANU 2012 website applies to the 2012 academic year only. All information provided on this website replaces the information contained in the Study at ANU 2011 website.