|
|
|
|
|
|
|
|
|
|
|
|
|
|
BA444/544 - Financial Risk
Management
Winter 2007
[Schedule] [Powerpoints] [Handouts] [Review Materials]
Office: 418D Bexell Phone:
737-2636
Office Hours- Email: moultonj@bus.orst.edu
Course Description: In the field of finance, risk is a key concept underlying advanced theory
and application. Operational risks from legal, regulatory and technological changes can be separated
from financial risks, such as input/output price variation, interest rate change, or foreign currency
fluctuation. Although both operational and financial risks will be discussed, concentration in this class
will be placed on identification, management and control of financial risks. Introduction to the
characteristics, payoffs and pricing of financial derivatives, including options, futures, and swaps, will
be combined with application through case analysis and simulated trading.
Learning Outcomes:
1) Exhibit awareness of corporate reasons for financial risk management,
including identifying risks, developing effective strategies and maintaining positions.
2) Accurately apply correct financial models to disparate valuation situations,
projecting knowledge of variations in securities usage, model assumptions and inputs.
3) Gain hands-on experience with market-based financial data to apply correct hedging
and speculation strategies to scenarios, both instructor-provided and self-developed.
4) Demonstrate knowledge of the effect of time on strategy and valuation changes.
Text and Reading Materials:
1) Derivatives: An Introduction, 2nd Edition. Author:
R. Strong.
Publisher: Southwestern
2)
3)
Overheads in Public Folder
4)
Wall Street Journal – Discounted
Subscription Signup in Class
Pre-requisites :
BA340,
BA442.
Grading:
The student will be graded on the results of 2 exams, 2 case write-ups, and simulated trading
with a short report and group
participation evaluation. BA544
credit will carry added weight from a term paper.
Grades will be calculated in the following manner:
444
Student 544 Student
Exams (2) 55% (20 & 35%) 35% (10 & 25%)
Case write-ups 15% (5 & 10%) 15% (5 & 10%)
Simulation Write-up 20% 20%
Group Evaluation 10% 10%
MBA Term Paper 20%
The case write-ups will be graded on a 10 point scale. 10 will be given for no errors, 9 and 8 for minor errors, 7 and 6 for significant errors. You can work with up to 3 other people, and submit only one case write-up paper, but will generally be limited to 1 page of text and 1 page of exhibits only. The exams will be in class, will be done individually, and will consist of a few to several questions. All exam and case write-up scores will count in the final tally of grade. Simulations will be a group participation activity and will be conducted in and out of class. Results of simulation will be summarized in an end-of-term write-up, the format of which will be discussed later in the class. The instructor will request an individual assessment of each group member’s participation. The exams will have scores that will be standardized to the above percentages by taking the raw score, dividing by available points and multiplying by the exam percentage. No late work will be accepted without arrangements with the instructor PRIOR to the due date. Any unarranged missed exam or late write-up will be worth zero points.
You may have 1 single 8X11 sheet of notes (front & back) for any quiz or exam.
Graduate Student required topical paper will be discussed individually,
by appointment.
ACADEMIC DISHONESTY: Please review Academic
Regulations number 15 in your schedule of classes. You will be held to this
standard.