Unit description
Corporate Finance
This unit develops the study of the role of quantitative analysis in facilitating personal and corporate financial decisions. The principal focus of the unit is the student’s knowledge of finance, especially in relation to investment decision-making for the corporate financial manager. Major topics include the capital asset pricing model, dividend policy and capital structure, the evaluation and selection of investment projects, the valuing of debt and equity securities, and working capital management.
Derivative Securities
This unit is designed to provide students with a detailed understanding of the features and uses of the major derivative instruments and how they are valued. It provides an in-depth understanding of how the Binomial and Black-Scholes option pricing models are derived and applied to options on currencies and futures. It covers how “The Greeks” are determined and used to manage a hedged portfolio.
Finance Law
This unit examines areas of particular relevance to the banking and finance industries. Topics covered include anti-money laundering provisions, debenture and note finance, fundraising via issue and sale of securities, key Australian financial system regulators, loan finance, managed investment schemes, regulation of consumer credit and takeovers. Regulation of financial services and markets, as well as the financial services licensee-client relationship, are also focused on.
International Finance
International finance studies the movements of exchange rates and international investment across countries. These movements affect the operation of multinational enterprises. A clear understanding of the value of currencies is crucial to successful hedging for businesses. A number of hedging techniques used in international finance will be introduced. Including money market hedge, option hedge, forward hedge and hedging using future contracts and currency swaps. In this unit, students also look at the methods for sourcing debt and equity for multinational enterprises.
Investment Analysis
In order to make informed investment decisions, an appropriate analysis of available assets and projects is important. In this unit, students will examine the key areas of investment in financial assets including the investment environment, security trading procedures, performance of investment companies, principles of constructing optimal portfolios with risk-free and risky financial assets, and models of pricing financial assets.
It also examines how financial markets behave with different degrees of efficiencies, and how financial statements and options are used in making investment decisions and managing investment risks respectively.
Treasury Management
The unit provides an introduction to fundamental concepts associated with risk management within an institution. Broadly, it will cover the basic financial engineering tools, the yield curve and the pricing of fixed-income instruments. Specific instruments including futures, forward rate agreements (FRAs), options and swaps will be discussed in detail. The unit will also consider the trading environment, focusing on market structures and functions.
