Financial Markets and Instruments

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

OR

Entry to the Master of Finance or Graduate Diploma in Finance

None

None

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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

The structure of the financial system; terminology, trading and pricing of money and capital market instruments; duration, value at risk, financial market volatility; term structure of interest rates; inflation, interest rates and indexed securities; regulation of securities markets and financial institutions; market; tax treatment of financial institutions; tax and company finance; futures markets; options markets; forward rate agreements; swaps; developments in retail financial markets.

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

• Analyse the nature of financial markets and explain the principles by which financial markets operate;
• Describe the major institutional participants and markets;
• Explain the risk return spectrum and the characteristics of financial instruments;
• Describe derivatives and explain how they are used in the management of financial risk;
• Apply the theory of regulation to current markets and critically assess the current regulatory structures.

• 3000 word assignment due in Weeks 7 to 9 (30%)
• 3-hour end-of-semester 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