Derivatives and Risk Management
Duration
- One Semester or equivalent
Contact hours
- 36 hours
On-campus unit delivery combines face-to-face and digital learning.
2024 teaching periods
| Hawthorn Higher Ed. Semester 1 |
Hawthorn Higher Ed. Semester 2 | |
|---|---|---|
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Dates: Results: Last self enrolment: Census: Last withdraw without fail: |
Prerequisites
Corequisites
Nil
Aims and objectives
This unit aims to enable students to identify and manage a variety of financial risk using derivative instruments, and the importance of implementing effective financial risk management procedures within an ethical decision-making framework.
Students who successfully complete this unit will be able to:
2. Apply advanced coherent understanding of different types of derivatives and the principles that underlie pricing models of these derivatives.
3. Critically analyse Treasury Risk Management policies and procedures and the importance of ethical decision making in risk management.
4. Apply research principles and techniques to plan and execute a group research project.
Unit information in detail
- Teaching methods, assessment, general skills outcomes and content.
Teaching methods
Face to Face Mode:
Student workload:
For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period
This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
• Non-scheduled learning events and activities (including directed online learning activities, assessments, independent study, student group meetings, and research)
To be successful, students should:
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
36 hours: Class 12 x 3 hours per week
Independent Learning
114 hours (12 x 9.5)
For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period
This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
• Non-scheduled learning events and activities (including directed online learning activities, assessments, independent study, student group meetings, and research)
To be successful, students should:
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
Assessment
1. Research Project (Group) 20-30%
2. Online quizzes (Individual) 20-30%
3. Examination (Individual) 40-60%
2. Online quizzes (Individual) 20-30%
3. Examination (Individual) 40-60%
General skills outcomes
• Teamwork skills
• Analysis skills
• Problem solving skills
• Communications skills
• Ability to tackle unfamiliar problems
• Ability to work independently
• Analysis skills
• Problem solving skills
• Communications skills
• Ability to tackle unfamiliar problems
• Ability to work independently
Content
• Introduction to a variety of derivative instruments
• Futures and Forwards
• Options – option types, option payoffs, option strategies, hedging with options – interest rate, currency, equity and commodity options
• Credit derivatives and Structured Credit Products
• Pricing of Futures, Forwards, Options and Credit Derivatives
• Black-Scholes Merton Options Pricing model
• Value at Risk (VaR) and Binomial trees
• Ethics in Risk Management and Treasury Risk Management
Study resources
- Reading materials.
Reading materials
Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.