GSBS6142
10 units
6000 level
Course handbook
Description
A broad range of derivative products are examined with a primary focus on how to use these for the management of financial risks. The course introduces standard models of pricing forward, futures and options on diverse underlying assets. The course then explores hedging methods to conduct risk management for business operations, speculative trades, and issued financial instruments. After completing this course students will be familiar with derivatives valuation and their use in risk management.
Availability2024 Course Timetables
Newcastle City Precinct
- Trimester 2 - 2024
Learning outcomes
On successful completion of the course students will be able to:
1. Analyse and price diverse derivatives products to generate an optimal risk management strategy.
2. Demonstrate critical thinking, analytical and problem solving skills in the context of derivatives pricing and hedging practice.
3. Explain the binomial model and its extension in continuous time to the Black-Scholes model.
4. Demonstrate an understanding of pricing forwards, futures and options contracts
Content
The content of this course may include:
- Operation of derivatives market.
- Risk and return characteristics of derivative securities.
- Pricing forward and future contracts.
- Mechanics of option trading.
- Option pricing with the Binomial and Black-Scholes models.
- Options on stock indices, futures and exotic options.
- Managing financial risk using derivative securities.
- Credit derivatives markets and instruments
Assessment items
In Term Test: In-Class test
Written Assignment: Written Assignment
Formal Examination: Formal Examination
Contact hours
Trimester 2 - 2024 - Newcastle City Precinct
Lecture-1
- Face to Face On Campus 2 hour(s) per week(s) for 12 week(s) starting in week 1
Online Activity-1
- Self-Directed 6 hour(s) per term
- For Face to face mode - 6 hrs of online content per term provided for self directed learning
Course outline
- GSBS6142 - Trimester 2, 2024 (Ncle) (PDF, 250.8 KB)
The University of Newcastle acknowledges the traditional custodians of the lands within our footprint areas: Awabakal, Darkinjung, Biripai, Worimi, Wonnarua, and Eora Nations. We also pay respect to the wisdom of our Elders past and present.