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FINC71-305: Financial Derivatives

Description

This advanced finance subject explores the concept of derivatives and their associated pricing, hedging and trading strategies. This includes the rationale underlying derivative market structures and mechanics and the application and pricing of derivative products.

Subject details

Type: Postgraduate Subject
Code: FINC71-305
EFTSL: 0.125
Faculty: Bond Business School
Semesters offered:
  • September 2023 [Standard Offering]
  • September 2023 [Standard Offering (SUPP)]
  • May 2024 [Standard Offering]
Credit: 10
Study areas:
  • Business, Commerce, and Entrepreneurship
Subject fees:
  • Commencing in 2023: $5,300.00
  • Commencing in 2024: $5,410.00
  • Commencing in 2023: $5,710.00
  • Commencing in 2024: $6,060.00

Learning outcomes

  1. Demonstrate advanced knowledge of the contractual features and properties of forwards, futures, options and credit derivatives on a range of underlying assets and commodities.
  2. Apply appropriate models to price forwards, futures, options and credit derivatives and be able to reproduce the mathematical derivations and economic rationale underlying these models.
  3. Demonstrate the ability to use option trading strategies and spreads and communicate the favourable financial conditions for each.
  4. Demonstrate the ability to apply and explain structural, reduced form and transition intensity-based approaches to modelling credit risk.
  5. Investigate several computational derivative and asset pricing models and produce a report to communicate the potential impacts of these methodologies.

Enrolment requirements

Requisites:

Nil

Assumed knowledge:

Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.

Assumed Prior Learning (or equivalent):

Restrictions:

Subject dates

  • Standard Offering
    Enrolment opens: 16/07/2023
    Semester start: 11/09/2023
    Subject start: 11/09/2023
    Cancellation 1: 25/09/2023
    Cancellation 2: 02/10/2023
    Last enrolment: 24/09/2023
    Withdraw - Financial: 07/10/2023
    Withdraw - Academic: 28/10/2023
    Teaching census: 06/10/2023
  • Standard Offering (SUPP)
    Enrolment opens: 18/07/2023
    Semester start: 11/09/2023
    Subject start: 11/09/2023
    Cancellation 1: 25/09/2023
    Cancellation 2: 02/10/2023
    Last enrolment: 24/09/2023
    Withdraw - Financial: 07/10/2023
    Withdraw - Academic: 28/10/2023
    Teaching census: 05/10/2023
  • Standard Offering
    Enrolment opens: 17/03/2024
    Semester start: 13/05/2024
    Subject start: 13/05/2024
    Cancellation 1: 27/05/2024
    Cancellation 2: 03/06/2024
    Last enrolment: 26/05/2024
    Withdraw - Financial: 08/06/2024
    Withdraw - Academic: 29/06/2024
    Teaching census: 07/06/2024
Standard Offering
Enrolment opens: 16/07/2023
Semester start: 11/09/2023
Subject start: 11/09/2023
Cancellation 1: 25/09/2023
Cancellation 2: 02/10/2023
Last enrolment: 24/09/2023
Withdraw - Financial: 07/10/2023
Withdraw - Academic: 28/10/2023
Teaching census: 06/10/2023