FINA5520 Risk Management and Financial Instruments
- 6 points
|Semester 2||UWA (Perth)||Face to face|
- This unit provides an in-depth examination of derivative securities and their role in risk management. It covers key derivatives used in practice, the principles of pricing and their applications in the modern financial world. The unit develops the theoretical frameworks, financial, probabilistic and statistical, essential to understanding modern practices in derivative pricing and applications such as portfolio insurance, dynamic hedging and risk management. The Black-Scholes-Merton framework and risk-neutral valuation are explored. The unit also looks at the role derivatives have played in financial crises.
- Students are able to (1) demonstrate how to value a variety of simple and complex derivative contracts; (2) critically evaluate and solve sophisticated problems on the pricing, valuation and investment strategies of derivative securities; (3) explain and apply the Black-Scholes-Merton and the Black-Scholes-Merton Greeks models; (4) explain the risks embedded in financial derivatives and how they have contributed to past financial crises; (5) use industry relevant tools (such as spreadsheets and financial information systems) to access, process and calculate derivative prices; and (6) demonstrate the ability to give oral presentations that are clear and coherent to specialists and non-specialists.
- Indicative assessments in this unit are as follows: (1) in-class assessments ; (2) assignments; and (3) examination. Further information is available in the unit outline.
Supplementary assessment is not available in this unit.
- Unit Coordinator(s)
- Dr Andrew Caminschi
- Unit rules
- for Master of Commerce students: FINA5432 Introduction to Finance
equivalent; for Master of Applied Finance students: FINA5533 Finance Essentials
FINA5523 Financial Statement Analysis and Business Valuation
FINA5631 International Financial Analysis
- Contact hours
- lectures/seminars/workshops: up to 3 hours per week
- Unit Outline
- Semester 1_2019 [SEM-1_2019]
Semester 2_2019 [SEM-2_2019]
- The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
- All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
- Books and other material wherever listed may be subject to change. Book lists relating to 'Preliminary reading', 'Recommended reading' and 'Textbooks' are, in most cases, available at the University Co-operative Bookshop (from early January) and appropriate administrative offices for students to consult. Where texts are listed in the unit description above, an asterisk (*) indicates that the book is available in paperback.