37011 Financial Market Instruments8cp; 3hpw, lecture/seminar
Requisite(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
Designed for specifically for quantitative finance students, this subject provide the disciplinary knowledge in financial markets instruments by providing a rigorous introduction to the main financial instruments and markets that comprise the financial system and to pricing 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, and interest rate hedging. The subject also covers option basics 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 to the questions asked.
Detailed subject description.