TYPE OF COURSE UNIT	Elective Course
LEVEL OF COURSE UNIT	Master's Degree Without Thesis
YEAR OF STUDY	-
SEMESTER	-
NUMBER OF ECTS CREDITS ALLOCATED	10
NAME OF LECTURER(S)	Instructor Ayhan Algüner
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) Manage transaction exposure 5) Manage translation exposure 6) Price derivative securities with mathematical models 7) Apply computer aided pricing programs in derivatives 8) Learn trading strategies in Turkish Derivatives Exchange 9) Understand extensively the binomial approach in pricing European and American options. 10) Apply the Black-Scholes option formula for the price of a European option and its Greeks. Understand the idea of delta-hedging.
MODE OF DELIVERY	Face to face
PRE-REQUISITES OF THE COURSE	No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT	None
COURSE DEFINITION	The objective of this course is to analyze derivative markets, related financial instruments called futures, forwards, options and swaps and particulary the derivatives exchange established in Turkey. Hedging, also, consists of the content of this course.
COURSE CONTENTS	WEEK TOPICS 1st Week Introduction to course 2nd Week The working process of Futures ve Forward markets 3rd Week Futures and Hedging 4th Week Pricing of Futures ve Forward 5th Week Swaps 6th Week Option markets 7th Week Share Options 8th Week Midterm 9th Week Transaction strategies related to options 10th Week Binomial Pricing Model 11th Week Black-Scholes-Merton Model 12th Week Greek letters in derivatives 13th Week Other types of options 14th Week Credit derivatives
RECOMENDED OR REQUIRED READING	Hull, J. C. (2010). Fundamentals of Futures and Options Markets . 7. basım. Prentice Hall.
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS	Lecture,Discussion
ASSESSMENT METHODS AND CRITERIA	Quantity Percentage(%) Mid-term 1 30 Project 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 14 6 84 Preparation for Final exam 1 55 55 Course hours 14 3 42 Preparation for Midterm exam 1 45 45 Laboratory (including preparation) Final exam 1 2 2 Homework 5 8 40 Project 1 30 30 Total Workload 300 Total Workload / 30 10 ECTS Credits of the Course 10
LANGUAGE OF INSTRUCTION	Turkish
WORK PLACEMENT(S)	No