Financial Engineering

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 60 hours per semester

ECON90033 Quantitative Analysis of Finance I and

ECON90034 Economics of Finance and

FNCE90047 Financial Markets and Instruments and

FNCE90016 International Financial Management and

EITHER ACCT90002 Financial Statement Analysis OR ACCT90004 Accounting for Decision Making

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For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

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.

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.

• 1500 word assignment or equivalent, due within two weeks of the end of the teaching period (30%);
• 2-hour final examination (70%).

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

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