Students

AFIN3029 – Derivative Instruments

2024 – Session 2, Online-scheduled-In person assessment, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Kai Li
kai.li@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
20cp at 2000 level including ((AFIN252 or AFIN2050) and (AFIN270 or AFIN2070 or STAT272 or STAT2372))
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit explores the characteristics and pricing of derivatives. The importance of the principles of hedging and arbitrage in derivative pricing, is considered. Derivatives investigated include forwards, futures, options and various structured products. In particular, the unit covers non-standard securities and numerical methods.

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: Examine the concepts of option pricing theory and the role of derivatives.
  • ULO2: Apply financial derivatives such as forward/futures and options to solve quantitative problems.
  • ULO3: Develop skills to price options and other derivatives.
  • ULO4: Examine the principles of hedging, arbitrage theory and structured products.

General Assessment Information

Late Assessment Submission Penalty (written assessments) 

Unless a Special Consideration request has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. Submission time for all written assessments is set at 11.55pm. A 1-hour grace period is provided to students who experience a technical concern.  

For any late submissions of time-sensitive tasks, such as scheduled tests/exams, performance assessments/presentations, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration.

Assessment Tasks

Name Weighting Hurdle Due
Final Examination 50% No University’s formal examination period
Assignment 30% No 2024-10-13
Quizzes 20% No 8/9/2024 for 1st quiz and 27/10/2024 for 2nd quiz

Final Examination

Assessment Type 1: Examination
Indicative Time on Task 2: 25 hours
Due: University’s formal examination period
Weighting: 50%

 

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

 
On successful completion you will be able to:
  • Examine the concepts of option pricing theory and the role of derivatives.
  • Apply financial derivatives such as forward/futures and options to solve quantitative problems.
  • Develop skills to price options and other derivatives.
  • Examine the principles of hedging, arbitrage theory and structured products.

Assignment

Assessment Type 1: Quantitative analysis task
Indicative Time on Task 2: 20 hours
Due: 2024-10-13
Weighting: 30%

 

The assignment will involve the analysis of a financial scenario or problem

 
On successful completion you will be able to:
  • Examine the concepts of option pricing theory and the role of derivatives.
  • Apply financial derivatives such as forward/futures and options to solve quantitative problems.
  • Develop skills to price options and other derivatives.
  • Examine the principles of hedging, arbitrage theory and structured products.

Quizzes

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: 8/9/2024 for 1st quiz and 27/10/2024 for 2nd quiz
Weighting: 20%

 

There are two online quizzes during the session, each worth 10%

 
On successful completion you will be able to:
  • Examine the concepts of option pricing theory and the role of derivatives.
  • Develop skills to price options and other derivatives.
  • Examine the principles of hedging, arbitrage theory and structured products.

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

Please refer to iLearn for details.

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 connect.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 the Service Connect Portal, 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.

Changes since First Published

Date Description
28/06/2024 there are two quizs, I also added the deadline for the first

Unit information based on version 2024.02 of the Handbook