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Financial Modelling - ACST201

This unit explores some basic concepts of finance, in particular: price; yield; the relationship between price and yield; interest rate risk; reinvestment risk; duration and its uses; volatility; the contingent payments approach; arbitrage pricing theory; pricing forwards; futures and options. To achieve understanding, this unit uses financial mathematics (the techniques learned in ACST101 are developed further here) to analyse transactions involving commonly used financial instruments in the context of the markets in which they are traded. At the same time, students develop skills in solving problems; in explaining financial ideas in simple language; in constructing spreadsheet models; and in working as part of a team. A range of assessment tasks are provided, some to generate feedback on how well the understanding and skills are developing, and others to determine the standard of understanding and skills attained.

Credit Points: 3
When Offered:

S1 Day - Session 1, North Ryde, Day

S1 Evening - Session 1, North Ryde, Evening

S2 Day - Session 2, North Ryde, Day

Staff Contact(s): Actuarial staff

(15cp at 100 level or above) including (ACST101 and (STAT150 or STAT170 or STAT171)) Prerequisite Information


NCCW(s): ACST200, ACST202
Unit Designation(s):


Unit Type:
Assessed As: Graded
Offered By:

Department of Actuarial Studies and Business Analytics

Faculty of Business and Economics

Course structures, including unit offerings, are subject to change.
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