BFM5915 Options, futures and risk management
Faculty of Business and Economics
BFM5915 Options, futures and risk management is a level 5, 6-credit-point, postgraduate unit from the Faculty of Business and Economics. It isn't offered in 2020. It has no prerequisites.
- Credit points
- 6
- Offered in 2020
- Not offered
- Workload
- 144 hours
- per semester
This is the 2020 handbook entry. See the 2021 entry.
Reviews
No reviews yetNo reviews yet. Be the first to review BFM5915.
Requisites
Before BFM5915
Prohibitions
You can't enrol if you have passed any of these.
After BFM5915
No unit lists BFM5915 as a prerequisite in the 2020 handbook.
Enrolment rules
Students must be enrolled in course B6003, B6004 or B6007.
Equivalent units
The same content under another code. Only one of them counts.
Overview
This unit examines how options and futures can be used for hedging risk in the process of risk management. Several aspects of risk management are examined, including the reasons why investors indulge in this activity, how value is created via risk management, and the firm-wide approach to risk management (given that any firm is exposed to a wide variety of risks). Once the importance of risk management has been established, emphasis turns to the use of derivatives (futures and options) to manage risk. To understand how they are used to manage risk, the unit also considers the characteristics and pricing of these instruments, including some exotic versions.
Offerings in 2020
The 2020 handbook lists no offerings for BFM5915.
Learning outcomes
When you finish this unit, you should be able to:
- 1
examine the financial risk management function and its evolution in the corporate world
- 2
understand the characteristics of futures and options markets and be able to apply these instruments so as to hedge the risk exposure of the firm
- 3
design appropriate risk management strategies using options and futures for hedging and speculation
- 4
demonstrate effective research skills to produce a professional quality business report recommending a solution to a risk management problem
- 5
demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of derivative instruments in financial markets, both the mechanism of their operation and their application in hedging risk exposures.
Workload and teaching
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study.
Contacts
- Chief Examiners
- Associate Professor Jothee Sinnakkannu
Common questions
What are the prerequisites for BFM5915?
BFM5915 has no prerequisites, but enrolment rules apply.
When is BFM5915 offered?
BFM5915 has no offerings listed in the 2020 handbook.
How much work is BFM5915?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
More details
- Credit points
- 6
- Level
- 5
- Study level
- Postgraduate
- Faculty
- Faculty of Business and Economics
- Organisational unit
- Department of Banking and Finance
- Type
- Coursework
- EFTSL
- 0.125
- Student contribution
- SCA Band 3
- Study abroad
- Not available
- Handbook years
- 20202021