FINM2002 Derivatives / FINM6041 Applied Derivatives
Semester 2, 2023
Assignment
Key information
ˆ Due date: Friday 13 October 2022, by 5pm Canberra time (Week 10).
ˆ To be conducted individually.
ˆ Submit electronically through Wattle Turnitin.
ˆ 10% of final grade and is not redeemable.
ˆ 10 marks in total. The grading will be benchmarked to the overall performance of the
cohort, targeting an average grade of 8−9.
ˆ Word limit: there is no definite word limit, but 1500−2000 words is recommended.
Submission instructions
ˆ Include the cover page with your signature
ˆ Submit in Word or PDF format
ˆ Name your files in the form of “Student ID + Last name”
ˆ Please include a reference list containing any cited articles, and use subheadings where
appropriate. The reference list and any appendices are not included in the word limit
ˆ Plagiarism is strictly not allowed
ˆ Use a 12pt font size, and 1.5 or double line spacing throughout your document
ˆ No late submission will be accepted
1
Assignment: Analyzing a recent event in the derivatives market
Choose a recent event from the derivatives market. Research and analyze the event thoroughly,
addressing the following aspects in your assignment:
1. Introduction. Provide a brief overview of the chosen event, highlighting its significance
to derivatives market
2. Timeline. Summarize the key timeline of the event, including the important dates and
any major developments or announcements
3. Derivatives Used. Describe the specific types of derivatives that were primarily involved
in the event. Explain how these derivatives are used in the event
4. Interest and Significance. Discuss why this event is interesting and significant for the
financial derivatives market. Highlight any unique features or factors that make this event
special from others
5. Winners and Losers. Analyze who gain(s) from this event and who might suffer losses.
Consider various market participants, such as individual investors, institutional players,
and even exchanges or regulators. And discuss their role as hedger, speculator or arbi-
trageur.
6. Implications. Discuss the broader implications of this event for investors and/or the
financial market. Address how this event might impact investment strategies, risk man-
agement practices, regulatory considerations, and overall market development.
Candidate topics
ˆ Negative oil future price
ˆ Russian nickel under sanction
ˆ The fall of Silicon Valley Bank
ˆ The GameStop short squeeze
ˆ Other events discuss in class
ˆ And any recent (ideally recent 10 years) derivatives events that you found interesting
2
Important notice of academic integrity:
Most of these events attracted huge attentions from both business and academia, and therefore
you can easily find many articles readily online that give you very detailed introduction and
analysis about such topic. You are encouraged to read these articles which can quickly give you
a good idea, and it is part of the research process. But, please keep in mind that plagiarism is
strictly not allowed. You can find further information about how to use sources properly in
https://www.anu.edu.au/students/academic-skills/academic-integrity/using-sources
3. Useful resources
You will be provided with some of the data necessary to complete the quantitative aspects of
your assignment. However, there are also plenty of resources available which may assist you in
data searching and report writing
https://au.finance.yahoo.com/
http://www.anu.edu.au/students/learning-development/writing-assessment/report-writing
https://www.business.unsw.edu.au/Students-Site/Documents/Writingareport.pdf
You might use a lot of online resources for this project, while the citation of online resources
could be annoying. I find the following instructions from UNSW very helpful
https://www.student.unsw.edu.au/how-do-i-cite-electronic-sources