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.
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
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.
|On completion of this unit, students should be able to:|
|1||Evaluate risks associated with financial asset ownership|
|2||Explain the characteristics of financial derivative securities and markets|
|3||Price financial derivatives using appropriate models|
|4||Implement risk management and trading strategies using financial derivatives|
|5||Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environment|
|6||Explain the value of financial risk management in the current economic environment.|
On completion of this unit, students should be able to:
- Evaluate risks associated with financial asset ownership
- Explain the characteristics of financial derivative securities and markets
- Price financial derivatives using appropriate models
- Implement risk management and trading strategies using financial derivatives
- Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environment
- Explain the value of financial risk management in the current economic environment.
- 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.
Teaching and assessment
Commonwealth Supported courses
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