FIN329 Futures and Options Markets and Trading

This subject provides students with knowledge of futures and options products and markets including the structure of the markets, participants and the products used for managing risk and/or trading for profit. Students will gain the skills required to analyse, price and trade futures and options products.

This subject contributes to the financial markets major.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Analyse the structure, processing and regulatory framework of the futures and options markets.
      2. Construct hedging, arbitrage and speculative trading strategies using equity futures.
      3. Construct hedging, arbitrage and speculative trading strategies using short and long-term interest rate futures.
      4. Construct hedging, arbitrage and speculative trading strategies using commodity derivatives.
      5. Appraise option pricing models and the forecasting of volatility.
      6. Construct options trading strategies.
      7. Assess how derivatives can be used in risk management.
  • Subject content
    • Topic Title
      Topic 1 Introduction to futures and options markets
      Topic 2 Trading and clearing processes
      Topic 3 Equity futures
      Topic 4 Interest rate futures – short-term
      Topic 5 Interest rate futures – long-term
      Topic 6 Commodity derivatives
      Topic 7 Options trading and strategies
      Topic 8 Options pricing
      Topic 9 Equity-based options
      Topic 10 Interest rate options
  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, FIN103 and FIN114 (for students enrolled before 2014)).

      Kaplan recommends that you complete the following Kaplan Online subject (or have a thorough working knowledge of the content) prior to enrolling in this unit:

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia course and have completed the following subject within the course completion time frame may not also complete the subject:

      • E112 Futures Markets and Trading OR
      • E113 Options Markets and Trading
      • FIN229 Options Markets and Trading
  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.