• 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 Stephen Sault
    • Qiuyang Chen
  • Mode of delivery In Person
  • Co-taught Course
  • Offered in First Semester 2019
    Second Semester 2019
    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 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:

  1. Explain in detail how options, futures, forwards, and swaps can be used on a range of underlying assets/commodities;
  2. Understand and be able to demonstrate the appropriate use of option trading strategies;
  3. 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;
  4. Explain in detail and be able to demonstrate various models to price forward, futures, swap and option contracts; and,
  5. Use these pricing models for risk management.

Other Information

Indicative Assessment

  1. Typical assessment may include, but is not restricted to: in-tutorial quizzes, an assignment and a final exam. (null) [LO null]

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 at least 10 hours per week to completing the work in this course. This will include at least 3 contact hours per week and up to 7 hours of private 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.

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
Domestic fee paying students
Year Fee
2019 $4320
International fee paying students
Year Fee
2019 $5700
Note: Please note that fee information is for current year only.

Offerings and Dates

The list of offerings for future years is indicative only

First Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
2934 25 Feb 2019 04 Mar 2019 31 Mar 2019 31 May 2019 In Person View

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
7432 22 Jul 2019 29 Jul 2019 31 Aug 2019 25 Oct 2019 In Person N/A

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