Course Title: Derivatives and Risk Management

Part A: Course Overview

Course Title: Derivatives and Risk Management

Credit Points: 12.00

Terms

Course Code	Campus	Career	School	Learning Mode	Teaching Period(s)
BAFI1026	City Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Sem 1 2006, Sem 2 2006, Sem 1 2007, Sem 2 2007, Sem 1 2008, Sem 2 2008, Sem 1 2009, Sem 2 2009, Sem 1 2010, Sem 2 2010, Sem 1 2011, Sem 2 2011, Sem 1 2012, Sem 2 2012, Sem 1 2013, Sem 2 2013, Sem 1 2014, Sem 2 2014, Sem 1 2015, Sem 2 2015, Sem 1 2016, Sem 2 2016, Sem 2 2017, Sem 2 2018, Sem 1 2019, Sem 2 2019, Sem 1 2020, Sem 2 2020, Sem 1 2021, Sem 2 2021, Sem 1 2022, Sem 2 2022, Sem 1 2023
BAFI1028	Kolej Metropolitan	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 1 09
BAFI1029	Singapore Inst of Management	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 1 09, Offsh 3 09, Offsh 1 10, Offsh 3 10, Offsh 1 11, Offsh 3 11, Offsh1 12, Offsh3 12, Offsh1 13, Offsh3 13, Offsh1 14, Offsh3 14, Offsh1 15, Offsh3 15, Offsh1 16, Offsh3 16, Offsh2 17, Offsh3 18, Offsh1 19, Offsh3 19, Offsh1 20, Offsh3 20, Offsh1 21, Offsh3 21, Offsh1 22, Offsh3 22, Offsh1 23
BAFI2048	Hong Kong Management Associatn	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Offsh 3 09
BAFI2048	Hong Kong Management Associatn	Undergraduate	625H Economics, Finance and Marketing	Internet	Offsh3 13
BAFI3192	RMIT University Vietnam	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet2 2012, Viet1 2013, Viet2 2013, Viet3 2013, Viet1 2014, Viet2 2014, Viet3 2014, Viet1 2015, Viet2 2015, Viet3 2015, Viet1 2016, Viet2 2016, Viet3 2017, Viet1 2019, Viet2 2019, Viet1 2020, Viet3 2020, Viet2 2021, Viet1 2022, Viet2 2022, Viet3 2022
BAFI3232	RMIT Vietnam Hanoi Campus	Undergraduate	625H Economics, Finance and Marketing	Face-to-Face	Viet1 2020, Viet3 2020, Viet2 2021, Viet1 2022, Viet3 2022

Course Coordinator: Dr. Xiaolu Hu

Course Coordinator Phone: +61 3 9925 5729

Course Coordinator Email: xiaolu.hu@rmit.edu.au

Course Coordinator Location: Building 80

Course Coordinator Availability: Please email for appointment

Pre-requisite Courses and Assumed Knowledge and Capabilities

Assumed Knowledge

Recommended: Corporate Finance or equivalent.

Course Description

This course aims to expand on the concepts that you have been introduced to in Financial Markets. You will explore financial market risk, financial risk management and approaches of
managing risk exposures. This course will also appraise various hedging and derivative instruments that are used in financial markets. You will also appreciate the role of the Treasury
function within corporations and banks and differentiate between the two. This course is designed to enable you to apply your academic learning to a contemporary workplace situation. The integration of work-based learning and academic learning will allow you to solve authentic business problems or address real issues faced in organisations.

Objectives/Learning Outcomes/Capability Development

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

CLO1: Recognise and evaluate the uncertainty of business decision-making in diverse business contexts.
CLO2: Interpret and analyse different methods of quantifying risk in different asset classes.
CLO3: Examine the concepts associated with the pricing models of derivative instruments and employ the models in risk management.
CLO4: Apply the Australian and global prudential regulatory framework and the risk management requirements in risk management contexts.
CLO5: Appraise the functionalities of corporate treasuries as they apply in the Australian context.
CLO6: Develop professional communication skills appropriate to the finance industry to work collaboratively and effectively in broad professional contexts

Overview of Learning Activities

To achieve the objectives listed above, this course requires you to participate in various learning activities. These activities may comprise of the following:

1. attend learning activities including lectures/recorded lectures and interactive sessions.

2. participate in in-class discussion of questions that links to industry and global situation.

3. form market view and practice on real-life market and economic situation accordingly.

4. rigorous self-study and preparation.

5. reading of, and note taking from recommended text books, as well as other references.

6. complete assessment tasks.

7. optional consultation with academic staff. Students are expected to conduct their own readings before attending class. The materials presented in class may be different from the materials students download from Canvas in terms of information format, breadth and depth. The materials used in class are specifically designed to explain and demonstrate key concepts and may not include all the details.

Overview of Learning Resources

Various learning resources are available online through myRMIT Studies\Canvas. In addition to topic notes; assessment details and a study schedule you may also be provided with links to relevant online information; readings; audio and video clips and communication tools to facilitate collaboration with your peers and to share information.

Resources are also available online through RMIT Library databases and other facilities. Visit the RMIT library website for further details. Assistance is available online via our chat and email services, face to face at our campus libraries or via the telephone on (03) 9925 2020.

Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.

What will I need to access and read for this course?
myRMIT
A comprehensive set of PowerPoint slides for each topic is available from the myRMIT under timed release. Other materials will be distributed in class from time to time.

You are also encouraged to read widely from many financial publications, and are expected to read the financial press and journals. 

Overview of Assessment

The assessment tasks, their weighting and the course learning outcomes to which they are aligned are as follows:

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

Assessment Task 2: 30%
Linked CLOs: 2, 4 ,5, 6

Assessment Task 3: 50%
Linked CLOs: 1, 2, 3, 4

Feedback will be provided throughout the semester in class and/or in online forums through individual and group feedback on practical exercises and by individual consultation.