| Area: | WASM Mineral Economics Teaching Area |
| Credits: | 12.5 |
| Contact Hours: | 16.0 |
| Lecture: | 4 x 4 Hours Weekly |
| Prerequisite(s): | 306031 (v.1) WASM Resource Sector Finance 602 or any previous version
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| Syllabus: | Options definitions and trading strategies - volatility and hedging option positions, option sensitivity to market conditions. Hedging - Methodologies and discipline, hedging in practice, real life situations and how to deal with them. Hedging simulation. Actual tuition undertaken as 16 hours of class in a four day module. |
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| Unit Outcomes: | On successful completion of this unit, students will have- A basic understanding of the fundamental principles and strategies concerning the operations of derivatives and commodities markets and the setting of forwards/futures prices, hedging from the point of view of both producers and users of commodities and common financial options and their valuation. Been provided with a review of fundamental principles relating to risk and decision analysis. |
| Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information. |
| Unit References: | No prescribed references. |
| Unit Texts: | Pierson et al. (2002), Business finance. New York, McGraw Hill. |
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| Unit Assessment Breakdown: | Exam 60%, Group assignment 10%, Individual assignments (3) 30%. This is by grade/mark assessment. |
| Year | Location | Period | Internal | Area External | Central External | | 2004 | Bentley Campus | Semester 2 | Y | | | | 2004 | Bentley Campus | Short Period 11 | Y | | | | 2004 | Kalgoorlie Campus | Semester 2 | Y | | | |
