Course Title: Options, Futures and Risk Management

Part A: Course Overview

Course Title: Options, Futures and Risk Management

Credit Points: 12.00

Terms

Course Code

Campus

Career

School

Learning Mode

Teaching Period(s)

BAFI2081

City Campus

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Sem 1 2006,
Sem 2 2006,
Sem 1 2007,
Sem 2 2007,
Spring2007,
Sem 1 2008,
Sem 2 2008,
Spring2008,
Sem 1 2009,
Sem 2 2009,
Spring2009,
Sem 1 2011,
Sem 2 2011,
Spring2011,
Sem 1 2012,
Sem 2 2012,
Sem 2 2013,
Spring2013,
Sem 1 2014,
Sem 2 2014,
Spring2014,
Sem 1 2015,
Sem 2 2015,
Sem 1 2016,
Sem 2 2016,
Spring2016,
Sem 1 2017,
Sem 2 2017,
Sem 1 2018,
Sem 2 2018

BAFI2082

Malaysia Institute of Managemt

Postgraduate

625H Economics, Finance and Marketing

Face-to-Face

Offsh 1 09

BAFI3207

Open Learning Australia

Non Award

625H Economics, Finance and Marketing

Distance / Correspondence

OUAS2PG18

Course Coordinator: Obaid Awan

Course Coordinator Phone: +61 3 9925 1318

Course Coordinator Email: obaidanwar.awan@rmit.edu.au

Course Coordinator Location: Melbourne City Campus

Course Coordinator Availability: By Appointment


Pre-requisite Courses and Assumed Knowledge and Capabilities

None


Course Description

This course provides a detailed understanding of how derivative instruments are used to enhance returns and manage risks. The course 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.


Objectives/Learning Outcomes/Capability Development

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On successful completion of this course you will be able to:

CLO1: Evaluate financial products and the markets in which they trade, including Futures and forwards, Equity options, swaps, and other derivatives, Commodities, Currencies, Corporate bonds and interest rates.

CLO2: Consider arbitrage arguments and hedging related to derivative products and fair value evaluation using a variety of advanced financial analysis techniques.  

CLO3: Appraise how Derivative Synthetics Position are created, and the application of equity derivatives (Equity Options, Stock Index Futures, Equity Swap), Currency Derivatives, Interest Rate Derivatives, Credit Derivatives and Commodities, for Trading, Hedging and Arbitrage Transactions

 

CLO4: Evaluate the use of derivative products for portfolio management and risk mitigation such as portfolio insurance and dynamic delta hedging and how various Hedge Ratios are calculated and applied.

 

CLO5: Argue how derivative instruments can be used in Credit Risk Management and the building of complex structured products such as Equity Linked Notes, Exotic Options, e.g. Asian Options, Knock Out Options, Look back option. Create a global arbitrage position with the SPX combos.

 


Overview of Learning Activities

In this course you will be an active learner.  Your learning will be supported through various in-class and online activities comprising individual and group work. These may include quizzes; assignments; prescribed readings; sourcing, researching and analysing specific information; solving problems; conducting presentations; producing written work and collaborating with peers on set tasks or projects.


Overview of Learning Resources

You have access to an extensive range of course materials on myRMIT studies/Canvas.  These resources include topic notes, additional resources such as case studies and videos, and information and guidance on case study analysis and writing of reports.


Overview of Assessment

 

Assessment Task 1: (20%)
Linked CLOs: 1, 2, 3, 4, 5

Assessment Task 2: (30%)
Linked CLOs: 1, 2, 3, 4, 5

Final Examination: (50%)
Linked CLOs: 1, 2, 3, 4, 5