TYPE OF COURSE UNIT	Elective Course
LEVEL OF COURSE UNIT	Doctorate Of Science
YEAR OF STUDY	-
SEMESTER	-
NUMBER OF ECTS CREDITS ALLOCATED	15
NAME OF LECTURER(S)	Instructor Ayhan Algüner
LEARNING OUTCOMES OF THE COURSE UNIT	At the end of this course, the students; 1) Understand the types of derivatives, their payoff functions, their developments, and the economic roles they play in the financial markets. 2) Apply the advanced risk management and trading strategies using derivatives. 3) Understand no-arbitrage principle and its role in pricing financial forwards and futures. 4) Learn the design and pricing of a forward rate agreement; understand the payoff of a Eurodollar futures; understand the design of swaps and how to determine the swap rate by using no-arbitrage principle. 5) Describe the put-call parity and other pricing relations between calls and puts using noarbitrage principle. 6) Understand extensively the binomial approach in pricing European and American options. 7) Apply the Black-Scholes option formula for the price of a European option and its Greeks. Understand the idea of delta-hedging. 8) Understand the application of option pricing theory in the area of financial engineering and corporate finance.
MODE OF DELIVERY	Face to face
PRE-REQUISITES OF THE COURSE	No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT	MAND636 FINANCIAL MANAGEMENT
COURSE DEFINITION	In scope of this marketing course students will learn about, general information about futures market, financial tools operating in futures market, purchase-sale strategies and future exchange markets in the World. Lastly attendees will learn structure and operation of derivatives and options market and also they will comprehend agreements in options market.
COURSE CONTENTS	WEEK TOPICS 1st Week Introduction 2nd Week Hedging Strategies Using Futures 3rd Week Determination of Forward and Futures Prices 4th Week Swaps 5th Week Mechanics of Options Markets 6th Week Properties of Stock Options 7th Week Binomial Trees 8th Week Wiener Processes and Ito's Lemma 9th Week The Black-Scholes-Merton Model 10th Week Greek Letters 11th Week Case Study 12th Week Case Study 13th Week Value at Risk 14th Week Credit Derivatives
RECOMENDED OR REQUIRED READING	Hull, J. C. (2011). Options, Futures, and Other Derivatives. 8. Baskı. Prentice Hall.
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS	Discussion,Lecture
ASSESSMENT METHODS AND CRITERIA	Quantity Percentage(%) Mid-term 1 30 Presentation of Case Study 1 30 Total(%) 60 Contribution of In-term Studies to Overall Grade(%) 60 Contribution of Final Examination to Overall Grade(%) 40 Total(%) 100
ECTS WORKLOAD	Activities Number Hours Workload Midterm exam 1 2 2 Preparation for Quiz Individual or group work Preparation for Final exam 1 200 200 Course hours 14 3 42 Preparation for Midterm exam 1 180 180 Laboratory (including preparation) Final exam 1 2 2 Homework Case Study Presentation 1 30 30 Total Workload 456 Total Workload / 30 15,2 ECTS Credits of the Course 15
LANGUAGE OF INSTRUCTION	Turkish
WORK PLACEMENT(S)	No