Undergraduate - UnitAFC3340 - Options, financial futures and other derivatives

This unit entry is for students who completed this unit in 2012 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 0 (NATIONAL PRIORITY), 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

Level	Undergraduate
Faculty	Faculty of Business and Economics
Offered	Clayton Second semester 2012 (Day)

Synopsis

Topics include institutional aspects of how financial derivatives markets operate, use of and factors affecting the price of options in equity, currency and interest rate markets, the pricing of and uses of futures, forward contracts and swaps, new financial derivative instruments in Australia.

Outcomes

The learning goals associated with this unit are to:

describe the characteristics of options, futures, and other derivatives
identify factors that affect option prices
apply option pricing models
explain the operation of futures markets and the link between spot and futures prices
analyse swaps, FRAs, caps, floors and collars in terms of their basic components for pricing purposes
demonstrate how the derivatives can be used for risk management, speculation and arbitrage
apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with derivative instruments and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFC3340.