37011 Financial Market Instruments
8cp; 3hpw, lecture/seminarRequisite(s): 24 credit points of completed study in spk(s): STM91543 Core Subjects (Mathematics)
These requisites may not apply to students in certain courses. See access conditions.
Anti-requisite(s): 25877 Financial Market Instruments
Postgraduate
Description
Designed specifically for quantitative finance students, this subject imparts students with disciplinary knowledge in financial markets instruments by providing a rigorous introduction to the main financial instruments and markets that comprise the financial system. It also introduces pricing of financial instruments by using no-arbitrage arguments. It discusses the valuation of various financial securities such as equities and foreign exchange, bills and bonds, forward rates and yield curve calculations, forward rate agreements (FRAs) and interest rate swaps, as well as interest rate risk management. The subject also covers basics of option contracts, including definitions, strategies and valuation.
The subject provides students with a number of practical exercises involving implementation of the pricing models and techniques covered.
The combination of theory and practical, real-world examples and problems promote enquiry and critical thinking. Innovation and creativity are required to successfully solve problems in the assessment tasks, where communication is also critical to clearly explain solutions.
Detailed subject description.