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ECF3320 Derivatives
Credit Points: 15
ECF2210 Capital Markets II
ECF2226 Investment Finance II
ECF2258 Business Analysis

This unit broadens and extends students’ knowledge of derivative securities and how they are used by a wide range of investors and corporations. Derivatives based on a variety of underlying securities are covered: individual shares, indices, commodities, interest rates and currencies. A variety of trading strategies are introduced and their risk-return characteristics are studied. Models to price derivatives are introduced, examined, and applied. Multiple techniques to hedge risk are compared with a view to establish optimal hedging policy under uncertainty.

Additional topics include swaps, value-at-risk, and financial engineering.

Throughout the unit there is a strong focus on bringing together theory, computation, and practice.


This Unit is part of the following Courses / Unit Sets
MAAAAIFinance Major
MIAAAFProfessional Finance Minor
Disability Standards for Education (Commonwealth 2005)
For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes, Graduate Attributes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Student Equity, Diversity and Disability Service website:

Last Updated - Higher Education: 31/03/2008 VET: 31/03/2008