fin3fdr derivative securities

DERIVATIVE SECURITIES

FIN3FDR

Not currently offered

Credit points: 15

Subject outline

In recent years there has been a dramatic increase in the size and complexity of both the types of financial investments and the institutions which are involved in the markets for investment products. In order to reduce the risks associated with trading in these markets specialized markets for risk management called derivative markets have rapidly developed. Unfortunately in some cases these markets have increased rather than reduced the financial risks faced by individuals, corporations and even governments. The markets for financial derivatives have, in the words of Warren Buffett, become potential weapons of Financial Mass Destruction. This subject provides you with a roadmap which will help them to understand and effectively function in the world of Financial Derivatives. You will cover main types of financial derivatives such as forwards, futures, swaps, and options. The emphases is on how to price financial derivatives and how to use them in risk management.

SchoolLa Trobe Business School (Pre 2022)

Credit points15

Subject Co-ordinator

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 3 - UG

Available as ElectiveNo

Learning ActivitiesLecture, tutorial questions, quiz, mid-term test, and final exam

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesFIN1FOF OR FIN2FIN

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Learning resources

Options, Futures and other Derivatives.

Resource TypeBook

Resource RequirementPrescribed

AuthorJohn C Hull

YearN/A

Edition/VolumeN/A

PublisherPEAR COLLEGE DIV

ISBN9781292212890

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

INQUIRY AND ANALYSIS - Creativity and Innovation
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry
PERSONAL AND PROFESSIONAL - Leadership and Teamwork

Intended Learning Outcomes

01. Compare and contrast financial derivatives and their markets
02. Explain relevant financial theories and apply them to the pricing and valuation of financial derivatives.
03. Develop analytical and practical skills in trading financial derivatives and using financial derivatives to manage the risk exposure of an asset or a portfolio

Subject options

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Subject not currently offered - Subject options not available.