MAF308 - Financial Derivatives and Risk Management
Unit details
| Year | 2026 unit information |
|---|---|
| Enrolment modes | Trimester 1: Burwood (Melbourne), Online Trimester 2: Burwood (Melbourne), Online |
| Credit point(s) | 1 |
| EFTSL value | 0.125 |
| Unit chair | Trimester 1: Peipei Wang Trimester 2: Peipei Wang |
| Previously | |
| Prerequisite | Must have passed MAF101 and MAF203 |
| Corequisite | Nil |
| Incompatible with | Nil |
| Educator-facilitated (scheduled) learning activities - on-campus unit enrolment | 1 x 1.5 hour on-campus lecture (recordings provided) and 1 x 1.5 hour on-campus seminar each week |
| Educator-facilitated (scheduled) learning activities - online unit enrolment | 1 x 1.5 hour recorded lecture and 1 x 1.5 hour online seminar (recordings provided) each week |
| Typical study commitment | Students will on average spend 150 hours over the teaching period undertaking the teaching, learning and assessment activities for this unit. |
Content
This unit introduces key concepts and tools used to manage financial risk. The unit covers fundamental topics such as option pricing, put-call parity, and hedging strategies using the binomial and Black-Scholes-Merton (BSM) models. Students will explore futures, forwards, and swaps, gaining practical insights into risk management techniques. The course also delves into financial engineering applications, emphasising how derivatives are used in real-world scenarios. Through assessments and problem-solving, students will develop a strong foundation in derivative markets and their role in financial decision-making.
Learning outcomes
Each unit in your course is a building block towards Deakin's Graduate Learning Outcomes - not all units develop and assess every Graduate Learning Outcome (GLO).
| ULO | These are the Unit Learning Outcomes (ULOs) for this unit. At the completion of this unit, successful students can: | Alignment to Deakin Graduate Learning Outcomes (GLOs) |
|---|---|---|
| ULO1 | Explain the characteristics of financial derivative instruments and markets and evaluate the risk-return trade-off of various derivative trading strategies. | GLO1: Discipline-specific knowledge and capabilities |
| ULO2 | Apply appropriate reasoning to price and determine the payoff patterns of derivative instruments. | GLO1: Discipline-specific knowledge and capabilities |
| ULO3 | Evaluate various risk management strategies to hedge against market uncertainties and assess the hedging outcomes. | GLO1: Discipline-specific knowledge and capabilities |
| ULO4 | Evaluate and communicate financial information professionally using appropriate mathematical and communication tools. | GLO1: Discipline-specific knowledge and capabilities |
Assessment
| Assessment Description | Student output | Grading and weighting (% total mark for unit) | Indicative due week |
|---|---|---|---|
| Assessment 1: (Individual) Report (Client) | 1200 words | 30% | Week 5 |
| Assessment 2: (Individual) Report (Analytical) | 1200 words | 30% | Week 9 |
| End-of-unit assessment task: Written | 1500 words | 40% | End-of-unit assessment period |
The assessment due weeks provided may change. The Unit Chair will clarify the exact assessment requirements, including the due date, at the start of the teaching period.
Learning resource
The texts and reading list for MAF308 can be found via the University Library.
Note: Select the relevant trimester reading list. Please note that a future teaching period's reading list may not be available until a month prior to the start of that teaching period so you may wish to use the relevant trimester's prior year reading list as a guide only.
Bring Your Own Device (BYOD)
To fully engage with Deakin's learning experiences, students must be able to access and use internet-connected devices as outlined in computing requirements at Deakin.
To support student success at Deakin, we have a bring-your-own-device (BYOD) learning environment that acknowledges that students and educators bring with them the digital tools they regularly use to complete academic tasks. These tools stay with you beyond the classroom, helping you to keep learning, explore ideas more deeply, and connect with knowledge in ways that matter to you.
Students requiring a loan device should visit our Loan Laptop webpage or students requiring longer-term assistance should visit our Student Financial Assistance webpage.
Unit fee information
Fees and charges vary depending on the type of fee place you hold, your course, your commencement year, the units you choose to study and their study discipline, and your study load.
Tuition fees increase at the beginning of each calendar year and all fees quoted are in Australian dollars ($AUD). Tuition fees do not include textbooks, computer equipment or software, other equipment or costs such as mandatory checks, travel and stationery.
For further information regarding tuition fees, other fees and charges, invoice due dates, withdrawal dates, payment methods visit our Current Students website.