FINS 3635 OPTIONS, FUTURES AND RISK MANAGEMENT TECHNIQUES
Course Outline Semester 1, 2012
Part A: Course-Specific Information Part B: Key Policies, Student Responsibilities andSupport
Table of Contents
PART A: COURSE-SPECIFIC INFORMATION 1 2 2.1 2.2 2.3 2.4 2.5 3 STAFF CONTACT DETAILS COURSE DETAILS Teaching Times and Locations Units of Credit Summary of Course Course Aims and Relationship to Other Courses Student Learning Outcomes LEARNING AND TEACHING ACTIVITIES 1 1 1 1 1 1 1 2 3 3 3 3 3 3 3 4 4 4 5 5 1 1 1 1 1 2 2 2 2 4
3.1 Approach to Learning and Teaching in the Course 3.2 Learning Activities and Teaching Strategies 4 4.1 4.2 4.3 4.4 4.5 5 6 7 1 2 2.1 2.2 2.3 2.4 2.5 3 4 ASSESSMENT Formal Requirements Assessment Details Assessment Format Assignment Submission Procedure Late Submission COURSE RESOURCES COURSE EVALUATION AND DEVELOPMENT COURSE SCHEDULE ACADEMIC HONESTY AND PLAGIARISM STUDENT RESPONSIBILITIES AND CONDUCT Workload Attendance General Conduct and Behaviour Occupational Health and Safety KeepingInformed SPECIAL CONSIDERATION AND SUPPLEMENTARY EXAMINATIONS STUDENT RESOURCES AND SUPPORT
PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT
PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS Lecturer-in-charge: Joakim Bang Room 311 Phone No: 9385 55484 Mobile: 04 0870 7830 (please keep it roughly within office hours) Email: firstname.lastname@example.org Consultation Times – Tuesdays 3.30 to 5.30 (or by appointment) Other lecturers: Kenny Siaw Room 359N Email: email@example.com A full list of tutors will be posted on Course Website.
2 COURSE DETAILS
2.1 Teaching Times and Locations
Lectures start in Week 1(to Week 12): The Time and Location are: Stream 1 Stream 2 Mon Wed 16:00 18:00 18:00 20:00 Electrical Engineering Building G24 Webster Theatre B
Tutorials start in Week 2 (to Week 13). A full list of tutorials, times and tutors will be on the Course Website.
Units of Credit
The course is worth 6 units of credit. There is no parallel teaching in this course.
Summary of Course
This course will provide a rigorous introduction to fundamental pricing principles and hedging techniques in derivative markets. It focuses on the main types of exchangetraded options and futures contracts. It is designed to acquaint students with the tools that are necessary to analyze common issues in derivative markets. In particular, appreciable time will be spent on investigating various arbitrage opportunities and developing risk management strategies using derivative instruments
Course Aims and Relationship to Other Courses
The aims of the course are to: • Provide a rigorous understanding of the main types of exchange-traded options and futures contracts,
FINS 3635 – Options, Futures and Risk Management Techniques
Develop a working knowledge on the use of options and futures in risk management, Provide the necessary skills to value options and futures.
The prerequisite for this course is FINS 2624 Portfolio Management. It is the responsibility of students to ensure that the prerequisite has been met before commencing this course. There is some overlap with material discussed in FINS2624, though the course will explore these topics in much greater depth. Students interested in Interest Rate Derivatives or Applied Portfolio Management will benefit from concepts explained in FINS3635. Students also need to be able to use a word processing package (such as WORD) and a spreadsheet (such as EXCEL). Some quantitative skill such as basic mathematical ability in dealing with algebraic manipulation is expected.
Student Learning Outcomes
On successful completion of this course, students should be able to 1. Understand mechanics of buying, selling, exercising, and settling of options and futures, 2. Determine the value of options and futures, 3. Use options and futures to manage...