Students
AFIN806 – Risk Management and Derivatives
2019 – S1 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Keith Woodward
Refer to ilearn
Georgina Ge
Refer to ilearn
Angela Chow
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|---|---|
| Credit points |
Credit points
4
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| Prerequisites |
Prerequisites
ACST603 or AFIN858
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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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Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
- Encourage peer learning, peer support and collaborative work in implementing appropriate risk management solutions for corporate risk scenarios
General Assessment Information
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To provide early feedback, you are to complete a self-assessment online quiz to be released in Week 4. Use this quiz as an indicator of whether you are progressing satisfactorily in the unit. If you are having difficulties, please see the Unit Convenor and consider withdrawing before the census date. Your score on the quiz will not count towards your grade.
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It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
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Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Week 4 class test | 25% | No | Week 4 |
| Mid-semester class test | 35% | No | Week 8 |
| Assignment | 20% | No | Week 11 |
| Final Project | 20% | No | Week 13 |
Week 4 class test
Due: Week 4
Weighting: 25%
On successful completion you will be able to:
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
Mid-semester class test
Due: Week 8
Weighting: 35%
On successful completion you will be able to:
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
Assignment
Due: Week 11
Weighting: 20%
Students complete a major assignment on a topical issue in financial risk management chosen by the convenor. Further details will be provided on the unit iLearn website.
Type of Collaboration: Groups of 4 or less. Submission: The project must be submitted via the unit iLearn website. Format: Refer to ilearn Length: Refer to ilearn Inherent Task Requirements: Refer to ilearn Late Submission: No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission - 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.On successful completion you will be able to:
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
- Encourage peer learning, peer support and collaborative work in implementing appropriate risk management solutions for corporate risk scenarios
Final Project
Due: Week 13
Weighting: 20%
Students complete a major project and prepare an extensive report on a problem in risk management using derivatives. The project will be chosen by the convenor.
Further details will be provided on the unit iLearn website.
Type of Collaboration: Individual Submission: The project must be submitted via the unit iLearn website. Format: Refer to ilearn Length: Refer to ilearn Inherent Task Requirements: Refer to ilearn Late Submission: No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission - 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved. No submission will be accepted after solutions have been posted.On successful completion you will be able to:
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
Delivery and Resources
| Recommended Text: | The recommended textbook is 'Options, Futures, and other Derivatives' (Global Edition) by John C. Hull, 9th Edition, Pearson. |
| Unit Web Page: |
Course material is available on the learning management system (iLearn) Students should consult the web page frequently. Learning, teaching and other reference materials are posted to this site throughout the semester. |
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Technology Used and Required: |
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| Delivery Format and Other Details: |
Classes Classes comprise a weekly, three-hour seminar, typically structured as a two-hour lecture plus one hour for exercise questions. Students should attend all classes, both for learning and assessment purposes. The timetable for classes can be found on the University web site at: http://www.timetables.mq.edu.au/ |
| Recommended Readings: | Additional references may be added during the semester. Details of these will be provided at the unit web page. |
| Other Course Materials: |
Unit Schedule
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Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Undergraduate students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Supplementary exams
Information regarding supplementary exams, including dates, is available at:http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
If you are a Global MBA student contact globalmba.support@mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
PG - Capable of Professional and Personal Judgment and Initiative
Our postgraduates will demonstrate a high standard of discernment and common sense in their professional and personal judgment. They will have the ability to make informed choices and decisions that reflect both the nature of their professional work and their personal perspectives.
This graduate capability is supported by:
Learning outcomes
- Recognise the role of derivatives in financial risk management
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
- Encourage peer learning, peer support and collaborative work in implementing appropriate risk management solutions for corporate risk scenarios
Assessment tasks
- Week 4 class test
- Assignment
- Final Project
PG - Discipline Knowledge and Skills
Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.
This graduate capability is supported by:
Learning outcomes
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
- Encourage peer learning, peer support and collaborative work in implementing appropriate risk management solutions for corporate risk scenarios
Assessment tasks
- Week 4 class test
- Mid-semester class test
- Assignment
- Final Project
PG - Critical, Analytical and Integrative Thinking
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Learning outcomes
- Recognise the role of derivatives in financial risk management
- Know the fundamental principles of derivatives valuation
- Understand the value of effective risk management and the dangers of poor risk management
- Evaluate alternative risk management strategies and tactics
- Encourage peer learning, peer support and collaborative work in implementing appropriate risk management solutions for corporate risk scenarios
Assessment tasks
- Week 4 class test
- Mid-semester class test
- Assignment
- Final Project
PG - Research and Problem Solving Capability
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
Assessment task
- Mid-semester class test