This unit is designed to further students’ understanding of futures and options contracts and their use in managing risk. It builds upon material covered in FINM1001/FINM7006 (Foundations of Finance) and STAT7055 (Financial Statistics). FINM7041 provides an overview of options, futures, forwards and swaps on a range of underlying assets/commodities including stocks, interest rates, foreign exchange as well as more exotic instruments. The models used for pricing these instruments will be examined as well as techniques used for risk management.
Learning Outcomes
Upon successful completion, students will have the knowledge and skills to:
On satisfying the requirements for this course, students will have the knowledge and skills to:
- Explain in detail how options, futures, forwards, and swaps can be used on a range of underlying assets/commodities;
- Understand and be able to demonstrate the appropriate use of option trading strategies;
- Demonstrate how we use derivatives for a range of assets/commodities including stocks, interest rates, foreign exchange as well as exotic instruments and weather and electricity derivatives;
- Explain in detail and be able to demonstrate various models to price forward, futures, swap and option contracts; and,
- Use these pricing models for risk management.
Other Information
See the course outline on the College courses page. Outlines are uploaded as they become available.
Indicative Assessment
- In-Tutorial Quizzes - 15%
- Assignment - 25%
- Final Examination - 60%
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Workload
10 hrs per week
Requisite and Incompatibility
Assumed Knowledge
Introductory courses in both Accounting and Finance
Specialisations
Fees
Tuition fees are for the academic year indicated at the top of the page.
If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
- Student Contribution Band:
- 3
- Unit value:
- 6 units
If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees. Where there is a unit range displayed for this course, not all unit options below may be available.
| Units | EFTSL |
|---|---|
| 6.00 | 0.12500 |
Course fees
- Domestic fee paying students
| Year | Fee |
|---|---|
| 2016 | $3660 |
- International fee paying students
| Year | Fee |
|---|---|
| 2016 | $4878 |
Offerings, Dates and Class Summary Links
ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.
First Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 3325 | 15 Feb 2016 | 26 Feb 2016 | 31 Mar 2016 | 27 May 2016 | In Person | N/A |
Second Semester
| Class number | Class start date | Last day to enrol | Census date | Class end date | Mode Of Delivery | Class Summary |
|---|---|---|---|---|---|---|
| 7615 | 18 Jul 2016 | 29 Jul 2016 | 31 Aug 2016 | 28 Oct 2016 | In Person | N/A |
