Faculty of Business and Accountancy University of Malaya
Faculty : Business and Accountancy
Department :
Programme of Study :
Course Code :
Course Title :
Credit Hours :
Course Prerequisite(s) / None
Minimum Requirement(s) :
Learning Outcomes :
Faculty of Business and Accountancy University of Malaya
Faculty : Business and Accountancy
Department : Finance and Banking
Programme of Study : Bachelor of Business Administration
Bachelor of Accounting
Course Code : CBEB 3308
Course Title : Derivatives Market
Credit Hours : 3
Course Pre-requisite(s) /
Minimum Requirement(s) : None
Learning Outcomes : At the end of this course, students should be able to;
1. Compare and contrast between the different types of derivatives
instruments.
2. Identify the pricing mechanism for the different types of derivatives
instruments.
3. Discuss the different features of derivatives instruments traded in Bursa
Malaysia Derivatives Market.
4. Develop replication, synthetics and arbitrage strategies when trading
in derivatives instruments.
5. Evaluate the appropriate option strategies to achieve trading objectives.
Synopsis of Course Contents : This course aims to expose students to the various types of derivatives
instruments traded in the local and international markets. It will enable
students to understand the basic techniques of valuing the various types
of derivative securities including forwards and futures, options and swaps,
its usage in the capital markets and in financial risk management.
Assessment : Continuous Assessment : 50%
Final Examination : 50%
5503: Derivatives
Summer Kobayashi
This course explains the basics of the main derivative instruments and describes their uses. The aim of this course is to$B!!(Bprovide you with an overall picture of the derivative instruments linked to equities, interest rates, credit events and currencies, and to take the mystery out of the associated jargon. In this course, you will explore:
- various derivative instruments, namely forwards, futures, options and swaps
- the uses of these instruments and who uses them
- the basic principle of how their prices are determined
- new products and the reasons why they are developed
MFIN7012B
Fixed Income Securities & Interest Rate Modelling
4
Gao, Xiaohui
General Information
“Fixed Income Securities” covers bonds, loans, swaps, and all financial instruments relating to interest rates. These securities make up a very substantial proportion of all investment and financing. In this course we will learn about the design, functions and modelling of these securities. We will also learn how these many instruments are related to each other, and how to manage the risk associated with them. We will also see how the Hong Kong market and the US market are related to each other.
Extra Information
Equivalent to MFIN6005 Fixed Income Securities and Their Derivatives
Prerequisites:
1. Spreadsheet Modelling in Finance;
2. Derivative Securities;
3. Mathematical Techniques of Finance I; and
4. Fundamentals of Asset Valuation I
MFIN6012B
Risk Management
5
Tse, Maurice K.S.
General Information
This course is to provided a comprehensive analysis and measure of market, credit, liquidity, operations, model and other risks. Techniques such as Value-at-Risk methods, forcasting volatilities and correlations, Monte Carlo simulations, stress testing, Riskmetrics and their limitations will also be discussed. Examples and applications of these techniques to various financial instruments will be introduced. The course will also address compliance functions of dervatives departments.
Extra Information
Prerequisites:
1. Spreadsheet Modelling in Finance; and
2. Derivative Securitie
MFIN7012A
Fixed Income Securities & Interest Rate Modelling
General Information
“Fixed Income Securities” covers bonds, loans, swaps, and all financial instruments relating to interest rates. These securities make up a very substantial proportion of all investment and financing. In this course we will learn about the design, functions and modelling of these securities. We will also learn how these many instruments are related to each other, and how to manage the risk associated with them. We will also see how the Hong Kong market and the US market are related to each other.
Extra Information
Equivalent to MFIN6005 Fixed Income Securities and Their Derivatives
Prerequisites:
1. Spreadsheet Modelling in Finance;
2. Derivative Securities;
3. Mathematical Techniques of Finance I; and
4. Fundamentals of Asset Valuation I
MFIN7001B
Financial Statement Analysis and Business Ethical Standards
3
Chan, Derek K. W.
General Information
This course introduces the fundamental concepts and techniques related to financial statement preparation and analysis. The accounting system is the information process used to record and report on economic activies of enterprises. Gaining an understanding of how economic activity is measured, and how it is reported, gives us the power to utilise that information to make our necessary decisions. Ethical and professional standards which those employed in the practice of financial analysis and investment mangement should know, understand, and apply will also be covered.
Extra Information
Equivalent to MFIN6007 Financial Statement and Risk Control
MFIN7003B
Mathematical Techniques of Finance I
3
Meng, R.
General Information
This course provides students with the necessary mathematical techniques used in continuous-time finance. It covers calculus, partial differential equation, applied probability and stochastic calculus. After taking this course, one should be able to fully understand no-arbitrage theory, Black-Scholes equation, risk-neutral probability and martingale. The purpose of this course is to lay down a solid mathematical foundation for students to learn more advanced topics in financial engineering, such as exotic options, interest rate derivatives and credit risk models.
Extra Information
Equivalent to MFIN6008 Mathematics of Financial Derivatives
Prerequisites:
1. Spreadsheet Modelling in Finance; and
2. Derivative Securities
FINA3806 Risk management
Semester : 1
For Student of Year : 2 & 3
This course introduces students to the techniques for corporate financial risk management. Topics include identification and measurement of financial risk, risk management with different financial instruments, such as forwards, futures, options, and other innovations, and some cases studies about applications of risk management.
Extra Information
Prerequisite: FINA0301 Derivative securities or FINA0301 Derivatives; and FINA0302 Theories of corporate finance or FINA0304 Advanced corporate Finance; and FINA2802 Investments and portfolio analysis
FINA0804 Fixed income securities
Semester : 1 & 2
For Student of Year : 2 & 3
Lecturer : Gao, X.
An integrated analysis of the market institutions, theory and empirical evidence in the area of fixed-income markets. Topics covered: Treasury markets, bond mathematics, arbitrage-free models of the term structure, corporate-debt pricing, convertible bonds, primary mortgage markets and securitization, immunization and portfolio insurance, valuation of futures and options on bonds, embedded options, and interest rate risk management.
Extra Information
Prerequisite: For students admitted to 1st year of study in 2005-06 or before: BUSI0016/FINA1002 Introduction to finance and FINA0301 Derivatives securities. For students admitted to 1st year of study in 2006-07 or after: FINA1003 Corporate finance and FINA0301 Derivative securities or FINA0301 Derivatives.
Derivatives (EKM 3208)
The course introduces students to financial derivatives which values are derived from some other securities or commodities. The course explores the derivative security pricing and its real world application. Course topics include an overview of futures, forwards, and options markets; the mechanics, determination of forwards and futures prices, hedging strategies using futures and SWAPS; the mechanics of options markets, properties of stock options, trading strategies involving options, and valuing stock options using the Back-Scholes Model. Issues regarding shortcomings of theoretical models of derivatives and ways of minimizing their impacts on the effectiveness of a hedge will also be discussed. The objectives of this course are (1) to introduce students to derivatives, especially the basic understanding of derivatives and their use in managerial decision making, (2) to introduce students to the basic concepts of futures, forwards, and options pricing. This course is designed for students undertaking finance major
Advanced electives comprise over 40% of the curriculum and help students develop expertise in specialized areas. Over 50 different electives are available every academic year. Courses offered in a particular year will depend on program requirements and faculty schedules.
Below are samples of electives offered in recent years:
Accounting Corporate Financial Reporting
Financial Statement Analysis
Economics China’s Economic Development and Reform
China’s External Relations and their Economic Impact
China’s Industry Analysis
Competitive Strategy
Global Macroeconomics
Politics and Socioeconomic Environment of China
Finance Advanced Derivatives Analysis
Derivatives Analysis
Equity Investment Management
Fixed Income Analysis
Hedge Funds
Investment Analysis
Investment and Finance in China
Risk Management for Financial Institution
Strategic Finance and Value Creation
Venture Capital and Private Equity
Information Systems/Operations Management Business Optimization
E-Logistics
Global Supply Chain Management
Information Strategy and Economics
Innovation Management
Knowledge Management Systems
Software Project Management
Telecommunications Policy and Regulations
Management Being a Global Leader
Leadership in Asia
MBA Leadership
Management in a Chinese Context
Managerial Consulting
Managerial Decision Making and Leadership
Managing in China
Strategic HRM
Strategic Management in China
Marketing Brand Management
Channel Management
Marketing Analysis for Customer Value Management
Marketing Research
Negotiation
Retailing
Other Business Plan Competition
Case Analysis Competition