• Offered by Rsch Sch of Finance, Actuarial Studies & App Stats
  • ANU College ANU College of Business and Economics
  • Classification Specialist
  • Course subject Financial Management
  • Areas of interest Finance
  • Academic career PGRD
  • Course convener
    • Dr Ding Ding
    • Dr Jenni Bettman
  • Mode of delivery In Person
  • Co-taught Course
  • Offered in First Semester 2020
    Second Semester 2020
    See Future Offerings

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 FINM7006 and STAT7055FINM7041 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:

  1. Explain in detail how options, futures, forwards, and swaps can be used on a range of underlying assets/commodities;
  2. Demonstrate the appropriate use of option trading strategies;
  3. Demonstrate the use of derivatives for a range of assets/commodities including stocks, interest rates, foreign exchange as well as exotic instruments and weather and electricity derivatives;
  4. Explain in detail and be able to demonstrate various models to price forward, futures, swap and option contracts;
  5. Use these pricing models for risk management; and,
  6. Collect, process, interpret and communicate the outcomes of complex financial problems.

Other Information

Indicative Assessment

  1. Typical assessment may include, but is not restricted to: exams, assignments, quizzes, presentations and other assessment as appropriate (100) [LO 1,2,3,4,5,6]

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Workload

Students are expected to commit 130 hours of work in completing this course. This includes time spent in scheduled classes and self-directed study time.

Inherent Requirements

Not applicable

Requisite and Incompatibility

To enrol in this course you must have completed STAT7055, FINM7006, and either BUSN8181 or BUSN7008. Students of M. Actuarial Studies, M. Actuarial Practice and M. Statistics only need to complete FINM7006 and BUSN7008 to enrol in this course. You are not able to enrol in this course if you have previously completed FINM2002.

Prescribed Texts

Information about the prescribed textbook will be available via the Class Summary

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
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

The list of offerings for future years is indicative only.
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
2604 24 Feb 2020 02 Mar 2020 31 Mar 2020 29 May 2020 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
7290 27 Jul 2020 03 Aug 2020 31 Aug 2020 30 Oct 2020 In Person N/A

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