Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Lecturer
Shane Magee
Contact via Email
Shane Magee
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Credit points |
Credit points
4
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Prerequisites |
Prerequisites
(Admission to MAppFin or MAppFin(Adv) or GradDipAppFin) and (AFCP801 or ECFS865)
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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 covers the structure, pricing and usage of various financial instruments, including spot, forward, swaps and option contracts for equity, debt, foreign exchange and commodity markets. This unit is concerned with understanding how these financial instruments work, how they are used by end users for speculation and risk management, how they are priced and valued, and how market makers manage their risks when they trade these financial instruments.
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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:
To pass this unit the student needs to (1) Achieve an aggregate mark of 50 or more, and; (2) Pass the Final Exam.
Name | Weighting | Hurdle | Due |
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Online Quizzes | 20% | No | Refer to iLearn |
Assignment | 30% | No | Refer to iLearn |
Final Examination | 50% | Yes | Refer to Timetable |
Due: Refer to iLearn
Weighting: 20%
Summary of Assessment Task
Individual / Group: Individual.
Format: There will be two online quizzes throughout the term. Each quiz will be worth 10%. The quizzes are designed to apply your knowledge throughout the term and to provide you with feedback on your performance.
Due Dates: See iLearn for due dates.
Submission Method: Online via iLearn.
Duration: Each quiz will be for 90 minutes.
Quiz Conditions: Open book.
Extension Requests:
Due: Refer to iLearn
Weighting: 30%
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to the unit's iLearn site.
Submission Method: Online via the unit's iLearn site.
Duration: Refer to Assignment Coversheet.
Extension Requests:
Other Information: Assignment questions and data will be placed on the unit’s iLearn site.
Due: Refer to Timetable
Weighting: 50%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)
Summary of Assessment Task
Individual / Group: Individual.
Due Date: Refer to Timetable.
Different Class Groups have different deadlines. Students should find the timetable and dates relevant to their group at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables.
Submission Method: As per MAFC Program Rules at https://mafcstudents.mq.edu.au/.
Duration: 3 hours plus 10 minutes reading time.
Examination Conditions:
Extension Requests:
Face-to-Face Teaching: Generally 36 hours.
Timetable: Detailed timetable for classes are on the Centre’s website at https://www.mq.edu.au/about/about-the-university/faculties-and-departments/business/study-with-us/macquarie-applied-finance-centre/timetables
Consultation Times:
Students who wish to contact any of the teaching staff may do so through:
Text: Notes will refer to the McDonald, Robert L. Derivatives MARKETS (3rd edition). Pearson Education/Prentice Hall, Upper Saddle River, New Jersey 2013. A lower cost version is available, Pearson New International Edition: ISBN 9781292021256.
Additional Readings:
Lecture Notes: Available in printed form and electronically via iLearn.
Study Problems: Students are required to work systematically through suggested problem sets. These problems will not be collected but they will help you prepare for the exams. Answers to the problems will be posted on the unit’s iLearn site.
Pre-unit Materials: Information papers on statistics, regression, accounting and other material may be found at http://mafcstudents.mq.edu.au/new-to-mafc/pre-course-materials/. Students should work through this material prior to commencing the degree. The material will remain a useful reference as students progress through the program.
Useful References:
Calculators:
Assumed Access:
Unit iLearn Site:
Important Notice:
Topics:
Readings:
2. FINANCIAL RISK MANAGEMENT (1 ½ SESSIONS)
Topics:
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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:
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).
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 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
Students should also consult the MAFC Program Rules found at https://mafcstudents.mq.edu.au/.
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
For all student enquiries, please contact studentsupport@mafc.mq.edu.au
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Learning Skills (http://www.students.mq.edu.au/support/learning_skills/) provides academic writing resources and study strategies to improve your marks and take control of your study.
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
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.
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:
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:
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:
Our postgraduates will be able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.
This graduate capability is supported by:
The curriculum for this unit has changed and been updated. This unit now assumes you have acquired pre-requisite knowledge of derivative financial instruments from AFCP801 Portfolio Management and Valuation or equivalent. Topic 1 now includes the building block financial instruments which replaces the material on "Introduction to forwards, futures and options". There are now two topics on option pricing. Topic 4 includes the same material on option relationships and the binomial option pricing model. Topic 5 has been updated to apply Black-Scholes option pricing model to different underlying assets and also includes option Greeks and implied volatility.
Assessments have also changed. The unit now includes online quizzes instead of a mid term exam. The weighting for the assignment is now 30% and the weighting for the final examination is now 50%.
This Unit Guide may be subject to change. Students will be advised, via an "Announcement" on iLearn, if the Unit Guide is changed.
The latest version is available at https://unitguides.mq.edu.au/.
Students should read the Unit Guide carefully at the start of term. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.