Availabilities:

LocationDomesticInternational
China - TUSTN/ASession 2,3
Gold CoastSession 2Session 2
LismoreSession 2Session 2
OnlineSession 2Session 2

Unit description

Introduces students to financial risk management including foreign exchange and interest rates, derivative securities and markets, derivative pricing, and financial risk mitigation strategies. Students will engage in teacher-directed activities and experiences relevant to contemporary financial risk management in the multinational enterprise context.

Unit content

Topic 1: Financial Derivatives: An Introduction

Topic 2: Mechanics of Forwards and Futures

Topic 3: Pricing Forwards and Futures

Topic 4: Strategies using Forwards and Futures

Topic 5: Mechanics of Options

Topic 6: Binomial Option Pricing Model

Topic 7: Black-Scholes-Merton Option Pricing Model

Topic 8: Strategies using Options I

Topic 9: Strategies using Options II

Topic 10: Financial Risk Management: Techniques and Applications

Topic 11: Managing Financial Risk in an Organisation I

Topic 12: Managing Financial Risk in an Organisation II

Learning outcomes

Unit Learning Outcomes express learning achievement in terms of what a student should know, understand and be able to do on completion of a unit. These outcomes are aligned with the graduate attributes. The unit learning outcomes and graduate attributes are also the basis of evaluating prior learning.

GA1: Intellectual rigour, GA2: Creativity, GA3: Ethical practice, GA4: Knowledge of a discipline, GA5: Lifelong learning, GA6: Communication and social skills, GA7: Cultural competence
On completion of this unit, students should be able to:GA1GA2GA3GA4GA5GA6GA7
1Evaluate risks associated with financial asset ownershipIntellectual rigourKnowledge of a discipline
2Explain the characteristics of financial derivative securities and marketsKnowledge of a disciplineCultural competence
3Price financial derivatives using appropriate modelsIntellectual rigour
4Implement risk management and trading strategies using financial derivativesIntellectual rigour
5Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environmentKnowledge of a disciplineCultural competence
6Explain the value of financial risk management in the current economic environment.Intellectual rigourKnowledge of a disciplineCultural competence

On completion of this unit, students should be able to:

  1. Evaluate risks associated with financial asset ownership
    • GA1: Intellectual rigour
    • GA4: Knowledge of a discipline
  2. Explain the characteristics of financial derivative securities and markets
    • GA4: Knowledge of a discipline
    • GA7: Cultural competence
  3. Price financial derivatives using appropriate models
    • GA1: Intellectual rigour
  4. Implement risk management and trading strategies using financial derivatives
    • GA1: Intellectual rigour
  5. Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environment
    • GA4: Knowledge of a discipline
    • GA7: Cultural competence
  6. Explain the value of financial risk management in the current economic environment.
    • GA1: Intellectual rigour
    • GA4: Knowledge of a discipline
    • GA7: Cultural competence

Prescribed texts

  • Chance, DM & Brooks, R, 2016, An Introduction to Derivatives and Risk Management, 10th edn, Cengage Learning, Boston, MA, USA. ISBN: ISBN-13: 978-1-305-10496-9.

  • Prescribed text information is not currently available.
Prescribed texts may change in future study periods.

Teaching and assessment

Teaching method
Workshop on-site
Assessment
Short written response - forward and futures30%
Short written response - options30%
Exam: open book40%

Teaching method
Lecture online 1 hour (12 weeks)
Tutorial on-site 2 hours (12 weeks)
Assessment
Short written response - forward and futures30%
Short written response - options30%
Exam: open book40%

Teaching method
Lecture online 1 hour (12 weeks)
Tutorial on-site 2 hours (12 weeks)
Assessment
Short written response - forward and futures30%
Short written response - options30%
Exam: open book40%

Teaching method
Lecture online 1 hour (12 weeks)
Assessment
Short written response - forward and futures30%
Short written response - options30%
Exam: open book40%
Notice

Intensive offerings may or may not be scheduled in every session. Please refer to the timetable for further details.

Southern Cross University employs different teaching methods within units to provide students with the flexibility to choose the mode of learning that best suits them. SCU academics strive to use the latest approaches and, as a result, the learning modes and materials may change. The most current information regarding a unit will be provided to enrolled students at the beginning of the study session.

Fee information

Domestic

Commonwealth Supported courses
For information regarding Student Contribution Amounts please visit the Student Contribution Amounts.
Commencing 2020 Commonwealth Supported only. Student contribution band: 3

Fee paying courses
For POSTGRADUATE or UNDERGRADUATE full fee paying courses please check Domestic Postgraduate Fees OR Domestic Undergraduate Fees

International

Please check the international course and fee list to determine the relevant fees.

+