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, Sem 1 2021, Sem 2 2021, Sem 1 2022, Sem 2 2022, Sem 1 2023, Sem 2 2023, Sem 1 2024 |
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, OUAS3PG20 |
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 38
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 financial risks. It focuses on the conceptual aspects concerning the mechanics, pricing, valuation, hedging principals, arbitrage and trading strategies of major classes of derivative securities such as options, futures/forward contracts and swaps. 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: Interpret and differentiate various over-the-counter and exchange-traded derivatives and their market mechanics.
CLO2: Formulate arbitrage arguments in fair value estimation in order to design hedging strategies with derivative products.
CLO3: Appraise the use of derivatives in the management of financial risks and in exploring financial arbitrage.
CLO4: Compare and contrast the relative strengths and weaknesses of options pricing models and analyse common strategies involved in trading options.
CLO5: Measure market risk using different approaches.
CLO6: Effectively apply critical thinking, analytical, problem solving and written communication skills to individual and/or group activities in the context of derivatives pricing and hedging practices, in a manner appropriate for finance peers and academics.
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, 3
Assessment Task 2: 40%
Linked CLOs: 2, 3, 4, 6
Assessment Task 3: 40%
Linked CLOs: 1, 2, 3, 5, 6
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.