Financial Engineering

Subject FNCE90033 (2013)

Note: This is an archived Handbook entry from 2013.

Credit Points: 6.25
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject is not offered in 2013.
Time Commitment: Contact Hours: This intensive subject is taught over 18 hours
Total Time Commitment:

Estimated total time commitment of 60 hours per semester
Prerequisites:

FNCE90020 Derivative Securities. This subject is only available to those students who would satisfy the entry criteria for the Master of Applied Finance or who have already completed 100 points in the Master of Finance or who have completed the Postgraduate Diploma in Finance in full.

Subject
Study Period Commencement:
Credit Points:
Not offered in 2013
12.50
Corequisites:

None
Recommended Background Knowledge:

None
Non Allowed Subjects:

None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

Graduate School of Business and Economics
Level 4, 198 Berkeley Street
Telephone: +61 3 8344 1670
Online Enquiries
Web: www.gsbe.unimelb.edu.au

Subject Overview:

Financial engineering principles, valuation techniques, tax and regulatory issues involved in product development, analysis of specific products such as: Victorian Equity Trust, Tascorp Equity Bonds, Market Index Deposits, Converting Preference Shares, Convertible Notes, IOs - POs, Lyons.
Objectives:

On successful completion of this subject students should be able to:

  • Apply financial engineering techniques to develop new financial instruments;
  • Provide advice on, and suggest methods for, overcoming a range of financing and agency problems in corporate finance and funds management;
  • Analyse causes of financial market imperfections and opportunities for developing innovative financial solutions;
  • Derive pricing models for a variety of innovative financial instruments;
  • Develop hypotheses which can explain and help predict the success or failure of innovative financial instruments.
Assessment:
  • 2-hour end-of-semester examination (70%)
  • Assignments totalling not more than 1500 words (30%)
Prescribed Texts:

You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

On successful completion of this subject, students should have improved the following generic skills:

  • Oral communication
  • Written communication
  • Collaborative learning
  • Problem solving
  • Team work
  • Statistical reasoning
  • Application of theory to practice
  • Interpretation & analysis
  • Critical thinking
  • Synthesis of data and other information
  • Evaluation of data and other information
  • Using computer software
  • Accessing data and other information from a range of sources
Related Course(s): Master of Applied Finance
Master of Finance

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