units

BFC3340

Faculty of Business and Economics

18 September 2017 18 November 2024
Monash University

Undergraduate - Unit

This unit entry is for students who completed this unit in 2015 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.

print version

6 points, SCA Band 2, 0.125 EFTSL

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

LevelUndergraduate
FacultyFaculty of Business and Economics
Organisational UnitDepartment of Banking and Finance
OfferedClayton Second semester 2015 (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:

  1. describe the characteristics of options, futures, and other derivatives
  2. identify factors that affect option prices
  3. apply option pricing models
  4. explain the operation of futures markets and the link between spot and futures prices
  5. analyse swaps, FRAs, caps, floors and collars in terms of their basic components for pricing purposes
  6. demonstrate how the derivatives can be used for risk management, speculation and arbitrage
  7. 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 BFC3340.

Assessment

Within semester assessment: 20%
Examination: 80%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)

Professor Jonathan Batten (First semester)
Associate Professor Paul Lajbcygier (Second semester)

Prerequisites

AFC2140 or BFC2140

Prohibitions

AFF3751, BFF3751, AFC3340