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Unit of Study FIN10712 - Financial Risk Management (2020)

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Unit Snapshot

  • Enrolment information

    This is an advanced unit. It is highly recommended that students take this unit after having completed an introductory Finance or Economics unit.

Unit description

Introduces students to financial risk management including foreign exchange and interest rates, derivative securities and markets, derivative pricing, and financial risk mitigation strategies. Students will engage in teacher-directed activities and experiences relevant to contemporary financial risk management in the multinational enterprise context.

Unit content

Topic 1: Financial Derivatives: An Introduction

Topic 2: Mechanics of Forwards and Futures

Topic 3: Pricing Forwards and Futures

Topic 4: Strategies using Forwards and Futures

Topic 5: Mechanics of Options

Topic 6: Binomial Option Pricing Model

Topic 7: Black-Scholes-Merton Option Pricing Model

Topic 8: Strategies using Options I

Topic 9: Strategies using Options II

Topic 10: Financial Risk Management: Techniques and Applications

Topic 11: Managing Financial Risk in an Organisation I

Topic 12: Managing Financial Risk in an Organisation II

Availabilities

Location Domestic International
China - TUST N/A
Session2,3
Gold Coast
Session2
Session2
Lismore
Session2
Session2
Online
Session2
Session2

Learning outcomes and graduate attributes

Unit Learning Outcomes express learning achievement in terms of what a student should know, understand and be able to do on completion of a unit. These outcomes are aligned with the graduate attributes. The unit learning outcomes and graduate attributes are also the basis of evaluating prior learning.

On completion of this unit, students should be able to:

GA1: Intellectual rigour, GA2: Creativity, GA3: Ethical practice, GA4: Knowledge of a discipline, GA5: Lifelong learning, GA6: Communication and social skills, GA7: Cultural competence
Learning outcome count Learning outcome description GA1 GA2 GA3 GA4 GA5 GA6 GA7
1 Evaluate risks associated with financial asset ownership
2 Explain the characteristics of financial derivative securities and markets
3 Price financial derivatives using appropriate models
4 Implement risk management and trading strategies using financial derivatives
5 Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environment
6 Explain the value of financial risk management in the current economic environment.

On completion of this unit, students should be able to:

  1. Evaluate risks associated with financial asset ownership
    • GA1:
    • GA4:
  2. Explain the characteristics of financial derivative securities and markets
    • GA4:
    • GA7:
  3. Price financial derivatives using appropriate models
    • GA1:
  4. Implement risk management and trading strategies using financial derivatives
    • GA1:
  5. Discuss the techniques available to reduce financial risk associated with trading and operating commercially in an international environment
    • GA4:
    • GA7:
  6. Explain the value of financial risk management in the current economic environment.
    • GA1:
    • GA4:
    • GA7:

Prescribed learning resources

Prescribed Texts
  • No prescribed texts.

Prescribed Texts
  • No prescribed texts.

Prescribed Learning Resources may change in future Teaching Periods.