| TYPE OF COURSE UNIT | Elective Course |
| LEVEL OF COURSE UNIT | Bachelor's Degree |
| YEAR OF STUDY | - |
| SEMESTER | - |
| NUMBER OF ECTS CREDITS ALLOCATED | 5 |
| NAME OF LECTURER(S) | Instructor Buket İmir
|
| LEARNING OUTCOMES OF THE COURSE UNIT |
At the end of this course, the students;
1) Describe the characteristics and features of various derivative securities.
2) Form investment and arbitrage strategies with derivative securities
3) Manage risk exposure and hedge by means of derivative securities
4) Price derivative securities with mathematical models
5)
6)
7)
8)
|
| MODE OF DELIVERY | Face to face |
| PRE-REQUISITES OF THE COURSE | Yes(BUS311) |
| RECOMMENDED OPTIONAL PROGRAMME COMPONENT | No |
| COURSE DEFINITION | This course covers forwards, futures, swaps, and options. By the end of the course, students will have good knowledge of how these products work, how they are used, how they are priced, and how financial institutions hedge their risks when they trade the products. |
| COURSE CONTENTS | | WEEK | TOPICS |
|---|
| 1st Week | Introduction to the course
| | 2nd Week | Mechanics of Futures and Forward Markets
| | 3rd Week | Hedging Strategies Using Futures
| | 4th Week | Determination of Forward and Futures Prices
| | 5th Week | Interest Rates
| | 6th Week | Interest Rate Futures
| | 7th Week | Swaps
| | 8th Week | Mid-Term
| | 9th Week | Mechanics of Options Markets
| | 10th Week | Properties of Stock Options
| | 11th Week | Trading Strategies Involving Options
| | 12th Week | Introduction to Binomial Trees
| | 13th Week | Valuing Stock Options: The Black-Scholes-Merton Model
| | 14th Week | Credit Derivatives
|
|
| RECOMENDED OR REQUIRED READING | 1. Hull, J. C. (2023). Fundamentals of Futures and Options Markets . 9th Ed. Pearson. |
| PLANNED LEARNING ACTIVITIES AND TEACHING METHODS | Questions/Answers,Discussion,Lecture |
| ASSESSMENT METHODS AND CRITERIA | | | Quantity | Percentage(%) |
|---|
| Mid-term | 1 | 30 | | Assignment | 1 | 20 | | Attendance | 1 | 20 | | Total(%) | | 70 | | Contribution of In-term Studies to Overall Grade(%) | | 70 | | Contribution of Final Examination to Overall Grade(%) | | 30 | | Total(%) | | 100 |
|
| ECTS WORKLOAD |
| Activities |
Number |
Hours |
Workload |
| Midterm exam | 1 | 1 | 1 | | Preparation for Quiz | 1 | 1 | 1 | | Individual or group work | 14 | 3 | 42 | | Preparation for Final exam | 1 | 42 | 42 | | Course hours | 14 | 3 | 42 | | Preparation for Midterm exam | 1 | 28 | 28 | | Laboratory (including preparation) | | | | | Final exam | 1 | 2 | 2 | | Homework | | | | | Total Workload | | | 158 |
|---|
| Total Workload / 30 | | | 5,26 |
|---|
| ECTS Credits of the Course | | | 5 |
|---|
|
| LANGUAGE OF INSTRUCTION | English |
| WORK PLACEMENT(S) | No |
| | |
