Students

AFIN8006 – Risk Management and Derivatives

2022 – Session 2, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Simon Wong
simon.wong@mq.edu.au
Terry Pan
terry.pan@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
(Admission to MActPrac or MFin) or (ACST603 or ACST6003 or AFIN858)
Corequisites Corequisites
Co-badged status Co-badged status
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.

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:

  • ULO1: Recognise the role of derivatives in financial risk management.
  • ULO2: Discover the fundamental principles of derivatives valuation and its application in managing risks.
  • ULO3: Evaluate alternative risk management strategies and tactics.
  • ULO4: Encourage peer learning, peer support and collaborative work inimplementing appropriate risk management solutions for corporate risk scenarios.

Assessment Tasks

Name Weighting Hurdle Due
Online Quiz 0% No Week 5
Mid Session Test 20% No Week 7
Group Assignment 20% No Week 10
Final Examination 60% No University Examination Period

Online Quiz

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 1 hours
Due: Week 5
Weighting: 0%

 

The online quiz will consist of 5 to 10 questions and will be available on iLearn. Please use the quiz result as an indicator of whether you are progressing satisfactorily in the unit.

 
On successful completion you will be able to:
  • Recognise the role of derivatives in financial risk management.

Mid Session Test

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 19 hours
Due: Week 7
Weighting: 20%

 

A 90 minute mid session test will be held during the session.

 
On successful completion you will be able to:
  • Recognise the role of derivatives in financial risk management.
  • Discover the fundamental principles of derivatives valuation and its application in managing risks.

Group Assignment

Assessment Type 1: Report
Indicative Time on Task 2: 20 hours
Due: Week 10
Weighting: 20%

 

Students will work in groups to conduct quantitative and qualitative analysis on a topical issue in financial risk management.

 
On successful completion you will be able to:
  • Recognise the role of derivatives in financial risk management.
  • Discover the fundamental principles of derivatives valuation and its application in managing risks.
  • Evaluate alternative risk management strategies and tactics.
  • Encourage peer learning, peer support and collaborative work inimplementing appropriate risk management solutions for corporate risk scenarios.

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: University Examination Period
Weighting: 60%

 

A two hour exam will be held during University Examination Period.

 
On successful completion you will be able to:
  • Recognise the role of derivatives in financial risk management.
  • Discover the fundamental principles of derivatives valuation and its application in managing risks.
  • Evaluate alternative risk management strategies and tactics.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Delivery Format and other Details: Classes comprise a weekly, three-hour seminar, typically structured as a two-hour lecture pus 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 website at: https://timetables.mq.edu.au/2022/

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 session.

Technology Used and Required: 

  • Access to the unit Web Site (iLearn).
  • Word processing software for report writing (e.g. Microsoft Word).
  • Spreadsheets for applying quantitative models studied in the unit (e.g. Microsoft Excel).

Recommended Text: 'Option, Futures, and Other Derivatives' (Global Edition) by John C. Hull, Latest Edition, Pearson.

Recommended Readings: Additional references may be added during the session.  Details of these will be provided at the unit web page.

Unit Schedule

Please refer to iLearn.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/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

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

The Writing Centre

The Writing Centre provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via AskMQ, or contact Service Connect.

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.

Unit information based on version 2022.04 of the Handbook