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 2 2017,
Sem 1 2018,
Sem 2 2018,
Sem 1 2019,
Sem 2 2019,
Sem 1 2020,
Sem 2 2020

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,
OUAS2PG19,
OUAS1PG20

Course Coordinator: Dr. Vuong Thao Tran

Course Coordinator Phone: +61 3 9925 5555

Course Coordinator Email: thao.tran2@rmit.edu.au

Course Coordinator Location: Building 80, Level 10, Room 49

Course Coordinator Availability: By Appointment via email


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, financial processes and  complex risk management tools in a variety of market contexts.


Objectives/Learning Outcomes/Capability Development

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

CLO1: Explain and evaluate various over-the-counter and exchange-traded derivatives and their market mechanics.

CLO2: Use arbitrage arguments in fair value estimation and designing hedging with derivative products.

CLO3: Compare and contrast the relative strengths and weaknesses of option pricing models and analyse common strategies involved in trading options.

CLO4: Apply derivative products to portfolio management and risk mitigation.

CLO5: Appraise how risk in quantified by banks and other institutions.


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

Various learning resources are available online through MyRMIT Studies\Canvas. The lecture notes and workshop notes are posted on Canvas.

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 and will be made available to you as required during the teaching period. 


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, 4

Assessment Task 2: 40%
Linked CLOs: 2, 3, 4

Assessment Task 3: 40%
Linked CLOs: 1, 2, 3, 4, 5

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.