SEMESTER 1 2015/2016
FINANCIAL RISK MANAGEMENT
LECTURER: RABIHAH BINTI MD.SUM
WEEK
1
2-3
OBJECTIVES
HOUR
METHOD
Lecture
P/Point
Tutorial
Tutorial
Forward Contract.
Lecture
4
4
Tutorial (A)
Tutorial (B)
Futures Contract.
Lecture
2
2
Tutorial(A)
Tutorial(B)
LST
P/Point
Excel
Spreadsheet
NOTES
Group
formation.
Number of
people in a
group:
Minimum=3
Maximum=5
Group
assignment title
given.
Quiz 1 on week
3.
Assignment 1
on week 3
P/Point
Excel
Spreadsheet
Assignment 2
Arbitrage pricing
Lecture
2
2
Tutorial(A)
Tutorial(B)
Options
Introduction to options.
Types of option:
Put option
Call option
Put and call options payoff diagram.
Lecture
2
2
Tutorial(A)
Tutorial(B)
Lecture
P/Point
Quiz 2
P/Point
Excel
Spreadsheet
Assignment 3
P/Point
Quiz 3
2
2
Tutorial (A)
Tutorial (B)
Lecture
Excel
Spreadsheet
Assignment 4
Limitations of BOPM.
8
10-11
P/Point
Quiz 4 on week
11
Tutorial(A)
Excel
Assignment 5
12
13
14
Tutorial(B)
Swaps.
Introduction to swaps.
Interest rate swaps.
Mechanics of interest rate swaps.
Cash flow of interest rate swaps.
Hedging using interest rate swaps.
Other swaps
Foreign currency swaps.
Credit swaps
Lecture
2
2
Tutorial(A)
Tutorial(B)
Lecture
2
2
Tutorial(A)
Tutorial(B)
Students
presentation
Spreadsheet
on week 11
P/Point
Excel
Spreadsheet
P/Point
P/Point