VIEWING CLASS
STATE:
Applied Derivatives
FINM7041
04130 - Rsch Sch of Finance, Actuarial Studies & App Stats - ANU College of Business and Economics
COURSE TOPIC
CLASS NUMBER
4206
TERM
First Semester, 2022
CLASS SECTION
1
CLASS AVAILABILITY
Active
MODE OF DELIVERY
In Person
CLASS START DATE
21/02/2022
CLASS END DATE
27/05/2022
CENSUS DATE
31/03/2022
LAST DATE TO ENROL
28/02/2022
STUDENT SPECIFIC PERMISSIONS
No
ENROLLED STUDENTS
84
ENROLMENT LIMIT
999
IS CONSENT REQUIRED TO ENROL?
No
IS CONSENT REQUIRED TO DROP?
No
MINIMUM UNITS
6
MAXIMUM UNITS
6
PROPOSER NAME:
Xiaoting Wei
PROPOSED DATE:
07/01/2022
APPROVED DATE:
17/01/2022
PUBLISHED
17/01/2022
Course Information
PHOTO

U PL OAD I M AGE
COURSE CONVENER 
UID
u1022060
Name
Dr Xiaoting Wei
Email
u1022060@anu.edu.au
Phone
0261250401
STUDENT CONSULTATION DAYS AND HOURS
DAYS OR BY APPOI NTM ENT HOURS (FROM ) E.G. 15 :00 OR BY APPOI NTM ENT HOURS (TO) E.G. 16:00
Friday 13:00 15:00
COURSE CONVENER - RESEARCH INTERESTS
Banking and Corporate Finance
ADMINISTRATIVE CONTACT 
UID
u1027566
Name
Patricia Dennis
Email
u1027566@anu.edu.au
Phone
0261257297
ADD LECTURERS, TUTORS OR DEMONSTRATORS BELOW 
ROLE UI D NAM E PHONE EM AI L STUDENT
CONSULTATI ON
DAY
HOURS (FROM )
E.G. 15 :00
HOURS (TO)
E.G. 16:00
Lecturer u1022060 Xiaoting Wei 0261250401 xiaoting.wei@anu.edu.au Friday 13:00 15:00
TUTORIAL REGISTRATION
Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. Information regarding enrolments for these options will be provided on
Wattle no later than week 1 of the semester.
SUPPORT FOR STUDENTS 
The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student
Administrators, or your College and Course representatives (if applicable).
• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for condential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students
Class Overview
CLASS STRUCTURE AND CONTENT 
WEEK/SESSI ON
NUM BER
SUM M ARY OF ACTI VI TI ES ASSESSM ENT AND OTHER I NFORM ATI ON
1 Introduction No tutorial or workshop
2 Hedging using Futures
3 Interest Rate Contracts and Swaps
4 Options and Trading Strategies Quiz 1
5 Valuing Options – Binominal Trees
6 Valuing Options – Black and Scholes Quiz 2
No workshop
7 Index and Foreign Exchange Options
8 Options on Futures Contracts Quiz 3
9 The Greeks Letters
10 Credit, Weather, Energy and Insurance Derivatives Quiz 4
11 Real Options in Project Evaluation
12 Review No workshop
RESEARCH-LED TEACHING
Some topics driven by the lecturer’s research experience. Sharing with students the latest research ndings or methods in relevant research area.
FIELD TRIPS IF RELEVANT
ADDITIONAL CLASS COSTS
REQUIRED RESOURCES
Textbook:
Hull, J., Treepongkaruna, S., Heaney, R., Pitt, D., and D. Colwell, Fundamentals of futures and options markets, 1st adaption, Pearson Education 2014. (i.e., The textbook readings
are optional for this course. In addition, this textbook is available to students as a 2 hour or 2 day loan from ANU library). Further, an e-book version of this text is available
at: https://library.anu.edu.au/record=b6460173
RECOMMENDED RESOURCES
EXAMINATION MATERIAL OR EQUIPMENT
A non-programmable scientic calculator is a necessity for every enrolled student in this course.
Assessment Tasks
ASSESSMENT SUMMARY 
TASK NUM BER VALUE (%) DUE DATE (YYYY-M M -DD) OR BLANK RETURN OF ASSESSM ENT DATE
(YYYY-M M -DD) OR BLANK
LI NKED LEARNI NG OUTCOM ES
1 40 2022-03-15 2022-05-20 1,2,3,4
2 60 2022-06-02 2021-06-30 1,2,3,4
ASSESSMENT TASK # 
Assessment Task 1
Assessment Task 2
Name of Assessment Task:
Online Quizzes
Details of Task:
Weight: 40% in total
Duration: 20 minutes each
Time: Weeks 4, 6, 8, & 10
Submission: via Wattle
Below are the topics covered:
Quiz 1 on Lectures 1 – 3
Quiz 2 on Lectures 4 – 5 
Quiz 3 on Lectures 6 – 7
Quiz 4 on Lectures 8 – 9
Four online quizzes are counted towards the nal grade and all quizzes are of equal value (10%). The quizzes are to be completed individually. Each quiz is 20mins and
this includes the time to upload your document. Each quiz will open at 2pm on Thursday of the relevant quiz week and it will close at 2.20pm. There is only one attempt
allowed for each student. Each quiz contains one calculation question and you must show all workings. The marking criteria will be based on model solutions and
answers prepared by the lecturer and will be made available to students via Wattle after the quiz week. No alternative arrangement will be made if a student misses a
quiz. In cases where students apply for special considerations and have them approved before the quiz, the weighting of the quiz will be transferred to the nal exam. 
Name of Assessment Task:
Final Exam
Details of Task:
Weight: 60%
Duration: 3.5 hours
Time: Examination Period
Submission: via Wattle
The nal exam will be a Wattle-based online exam and will be worth 60%. You will have 3.5 hours to complete the exam and it is to be completed individually. A mixture of
theoretical and practical (numerical) questions will be included. All topics covered in this course will be examined. It will be open book and all materials are permitted.
The exam will be centrally timetabled and more details about the exam will be provided in Week 10.
PARTICIPATION
Course content delivery will take the form of pre-recorded weekly lectures (available via echo360 on Wattle), pre-recorded weekly workshops (available via echo360 on Wattle) and
weekly tutorials, delivered in hybrid format (on campus, live through scheduled Zoom sessions and as pre-recorded videos).
EXAMINATION(S)
Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further
information.
Assignment Submission
ASSESSMENT REQUIREMENTS 
The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to
managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through
Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.
ONLINE SUBMISSION 
All assessments are to be submitted online.
HARDCOPY SUBMISSION 
There are no hard-copy submission for this course.
EXTENSIONS AND PENALTIES 
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for
assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have
documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due
date.
LATE SUBMISSION 
No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.
RETURNING ASSIGNMENTS
RESUBMISSION OF ASSIGNMENTS
Related Policies and Other Information
EDUCATIONAL POLICIES 
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement
them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
MARK MODERATION 
Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some
moderation of marks might be applied prior to nal results being released.
REFERENCING REQUIREMENTS 
Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the le named “ANU and College Policies,
Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
DISTRIBUTION OF GRADES 
Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports
on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualication
type learning outcomes. Since rst semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
PRIVACY NOTICE 
The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users rst agreeing to the
database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the
database licensor and submit personal information, including their: rst name; last name; ANU email address; and other information. In cases where student end users are asked
to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service —
including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially
offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the
database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to
enquire about alternative arrangements that are available.
ACADEMIC INTEGRITY 
Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the
community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to
embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that
are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to
ensure the quality and value of the qualication that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage
academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic
misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre
offers a number of workshops and seminars that you may nd useful for your studies.
OTHER INFORMATION TO BE PUBLISHED ON P&C
OTHER INFORMATION THAT WILL NOT BE PUBLISHED
Feedback
STAFF FEEDBACK TO STUDENTS 
Students will be given feedback in the following forms in this course:
• Written comments
• Verbal comments
• Feedback to the whole class, to groups, to individuals, focus groups
STUDENT FEEDBACK 
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course
Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education
Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more
information on student surveys at ANU and reports on the feedback provided on ANU courses.