Unit convenor and teaching staff |
Unit convenor and teaching staff
Charles Hyde
Veronica Chen
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
ACST603 or AFIN858 or admission to MCom or MIntBus or MEc or MActPrac prior to 2011
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
This unit examines current techniques for measuring and managing the financial risk faced by corporate and financial institutions, with an emphasis on the practical use of derivative financial products such as forwards, futures, swaps and options to manage risk.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
Name | Weighting | Due |
---|---|---|
Class Test | 20% | Week 7 |
Case Study | 30% | Week 12 |
Final Examination | 50% | Examination period |
Due: Week 7
Weighting: 20%
Description
60 minute written test.
Submission
Activity completed in class.
Late assessment
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Due: Week 12
Weighting: 30%
Description
Students conduct a case study on a topical issue in risk management and derivatives.
Group work
This task is to be conducted by groups consisting of between 3 and 5 members.
Submission
Hand case study report to instructor during class in week 12.
Late assessment
No extensions will be granted. Students who have not submitted the task prior to the deadline will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
Due: Examination period
Weighting: 50%
Description
2 hour exam with 10 minutes reading time.
To be eligible to pass this unit, a pass is required in the final examination.
You are permitted ONE A4 page of paper containing reference material printed on both
sides. The material may be handwritten or typed. The page will not be returned at the
end of the final examination.
Classes
Required and Recommended Texts and/or Materials
Unit Web Page
Teaching and Learning Activities
Technology Used and Required
Research and practice
Changes since the Last Offering of this Unit
Week |
Topic |
1 |
Introduction to risk management and derivatives |
2 |
Managing risk with derivatives |
3 |
Pricing forwards, futures and swaps |
4 |
Pricing options: binomial model |
5 |
Pricing options: Black-Scholes-Merton model |
6 |
Measuring risk |
7 |
Class test |
|
Mid-session break |
8 |
Public Holiday - No classes |
9 |
Managing interest rate and credit risk |
10 |
Major derivatives losses |
11 |
Model risk |
12 |
Ethical issues in risk management |
13 |
Valuing risk management |
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Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Supplementary Exams
Further information regarding supplementary exams, including dates, is available here http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
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Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
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