Monash University Handbook 2010 Undergraduate - Unit

Synopsis

This unit examines the institutional features of futures and options markets, the use of futures, options and other derivatives in arbitraging, trading and hedging, and pricing of these instruments.

Objectives

The learning goals associated with this unit are to:

• discuss the operations of derivative markets
• explain the use of the options and futures markets for hedging and trading purposes
• implement trading strategies and measure positions
• demonstrate how to price and value standard futures and option contracts
• apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with futures and options markets.

Assessment

Within semester assessment: 30%
Examination (3 hours): 70%

Contact hours

3 hours per week

Prerequisites

AFF2401