This course aims to introduce the concepts of options, forward contracts, futures contracts, and swaps. Students enrolled to this course are also expected to be able to use derivative markets to deal with financial risk. The course provides invaluable information to analyze financial derivatives.
Course Content
This course contains; Introduction,Hedging Strategies Using Futures,Interest Rates,Determination of Forward and Futures Prices,Interest Rate Futures,Swaps, Securitization, and the Crisis,Midterm,Properties of Options,Trading Strategies and Binomial Trees,Pricing of Stock Options,Options on Stock Indices, Currencies, and Futures,The Greeks,Financial Risk Management Techniques and Applications I,Financial Risk Management Techniques and Applications II.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to identify the fundamental concepts of financial risk management and its importance in modern financial markets.
10, 16, 6, 9
A
1.1. Defines the concept of financial risk and distinguishes its types
1.2. analyzes the role of derivatives in modern financial markets
2. Will be able to identify different types of Financial Risks
10, 16, 6, 9
A
2.1. Classifies market risk and evaluate its impact on investment portfolios
2.2. Recognizes credit risk and develops assessment and management strategies
3. Will be able to analyze Derivative Instruments
10, 16, 6, 9
A
3.1. Evaluate features and applications of forwards and futures contracts
3.2. assesses options and their role in risk hedging and speculation
4. Will be able to define Risk Management Strategies.
10, 16, 6, 9
A
4.1. Explains hedging strategies using derivative instruments
4.2. Evaluates speculative and arbitrage techniques in derivative markets
5. Will be able to examine the regulatory framework and ethical considerations associated with derivative trading and risk management practices.
10, 16, 6, 9
A
5.1. Examines the role of regulatory bodies in monitoring derivative markets
5.2. Discusses the ethical challenges in derivative trading and risk management practices
Financial Risk Management Techniques and Applications I
14
Financial Risk Management Techniques and Applications II
Resources
John C. Hull, "Fundamentals of Futures and Options Markets", Global Edition, 8/E, ISBN: 9781292155036
Don M. Chance, Robert Brooks, "An Introduction to Derivatives and Risk Management", 10/E, ISBN: 9781305104969
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Uluslararası ticaret ve finansman alanında teorik bilgileri tanımlar.
X
2
Uluslararası ticaret ve finansman alanında gerekli matematiksel ve istatistiki yöntemleri anlatır.
X
3
Uluslararası ticaret ve finansman alanında gerekli en az bir bilgisayar programı kullanır.
X
4
Uluslararası ticaret ve finansman alanında gerekli olan mesleki yabancı dil yeterliliğini gösterir.
5
Uluslararası ticaret ve finansman alanında projeler hazırlar ve takım çalışmalarını yönetir.
X
6
Mesleki alanda yaşam boyu öğrenmenin gerekliliği bilinciyle bilim ve teknolojideki gelişmeleri izleyerek kendini sürekli yenileyip edindiği bilgi ve becerileri eleştirel olarak değerlendirir.
X
7
Uluslararası ticaret ve finansman alanında teorik ve uygulamaya yönelik bilgileri kullanır
X
8
En az A1 düzeyinde bir yabancı dili kullanarak güncel teknolojileri takip eder, sözlü / yazılı iletişim kurar.
9
Örgüt / kurumsal, iş ve toplumsal etik değerlerini benimser ve kullanır.
10
Topluma hizmet duyarlılığı çerçevesinde, sosyal sorumluluk ilkelerini benimser ve gerektiğinde inisiyatif alır.
11
Disiplinler arası çalışmalar yürütebilmek için farklı disiplinlerde (ekonomi, finans, sosyoloji, hukuk, işletme) temel bilgileri ve verileri analiz ederek alanında kullanır.
X
12
Öğrenciler, küresel ticaret, ihracat-ithalat işlemleri, gümrük işlemleri ve dış ticaretin finansmanı alanlarında uzmanlık elde eder.
X
Assessment Methods
Contribution Level
Absolute Evaluation
Rate of Midterm Exam to Success
40
Rate of Final Exam to Success
60
Total
100
ECTS / Workload Table
Activities
Number of
Duration(Hour)
Total Workload(Hour)
Course Hours
13
3
39
Guided Problem Solving
0
0
0
Resolution of Homework Problems and Submission as a Report
5
5
25
Term Project
0
0
0
Presentation of Project / Seminar
1
25
25
Quiz
0
0
0
Midterm Exam
1
25
25
General Exam
1
25
25
Performance Task, Maintenance Plan
0
0
0
Total Workload(Hour)
139
Dersin AKTS Kredisi = Toplam İş Yükü (Saat)/30*=(139/30)
5
ECTS of the course: 30 hours of work is counted as 1 ECTS credit.
Detail Informations of the Course
Course Description
Course
Code
Semester
T+P (Hour)
Credit
ECTS
FINANCIAL RISK and DERIVATIVE MARKETS
-
Fall Semester
3+0
3
5
Course Program
Prerequisites Courses
Recommended Elective Courses
Language of Course
English
Course Level
First Cycle (Bachelor's Degree)
Course Type
Elective
Course Coordinator
Assist.Prof. Ayşe Saime DÖNER
Name of Lecturer(s)
Prof.Dr. Mesut KARAKAŞ
Assistant(s)
Aim
This course aims to introduce the concepts of options, forward contracts, futures contracts, and swaps. Students enrolled to this course are also expected to be able to use derivative markets to deal with financial risk. The course provides invaluable information to analyze financial derivatives.
Course Content
This course contains; Introduction,Hedging Strategies Using Futures,Interest Rates,Determination of Forward and Futures Prices,Interest Rate Futures,Swaps, Securitization, and the Crisis,Midterm,Properties of Options,Trading Strategies and Binomial Trees,Pricing of Stock Options,Options on Stock Indices, Currencies, and Futures,The Greeks,Financial Risk Management Techniques and Applications I,Financial Risk Management Techniques and Applications II.
Dersin Öğrenme Kazanımları
Teaching Methods
Assessment Methods
1. Will be able to identify the fundamental concepts of financial risk management and its importance in modern financial markets.
10, 16, 6, 9
A
1.1. Defines the concept of financial risk and distinguishes its types
1.2. analyzes the role of derivatives in modern financial markets
2. Will be able to identify different types of Financial Risks
10, 16, 6, 9
A
2.1. Classifies market risk and evaluate its impact on investment portfolios
2.2. Recognizes credit risk and develops assessment and management strategies
3. Will be able to analyze Derivative Instruments
10, 16, 6, 9
A
3.1. Evaluate features and applications of forwards and futures contracts
3.2. assesses options and their role in risk hedging and speculation
4. Will be able to define Risk Management Strategies.
10, 16, 6, 9
A
4.1. Explains hedging strategies using derivative instruments
4.2. Evaluates speculative and arbitrage techniques in derivative markets
5. Will be able to examine the regulatory framework and ethical considerations associated with derivative trading and risk management practices.
10, 16, 6, 9
A
5.1. Examines the role of regulatory bodies in monitoring derivative markets
5.2. Discusses the ethical challenges in derivative trading and risk management practices
Financial Risk Management Techniques and Applications I
14
Financial Risk Management Techniques and Applications II
Resources
John C. Hull, "Fundamentals of Futures and Options Markets", Global Edition, 8/E, ISBN: 9781292155036
Don M. Chance, Robert Brooks, "An Introduction to Derivatives and Risk Management", 10/E, ISBN: 9781305104969
Course Contribution to Program Qualifications
Course Contribution to Program Qualifications
No
Program Qualification
Contribution Level
1
2
3
4
5
1
Uluslararası ticaret ve finansman alanında teorik bilgileri tanımlar.
X
2
Uluslararası ticaret ve finansman alanında gerekli matematiksel ve istatistiki yöntemleri anlatır.
X
3
Uluslararası ticaret ve finansman alanında gerekli en az bir bilgisayar programı kullanır.
X
4
Uluslararası ticaret ve finansman alanında gerekli olan mesleki yabancı dil yeterliliğini gösterir.
5
Uluslararası ticaret ve finansman alanında projeler hazırlar ve takım çalışmalarını yönetir.
X
6
Mesleki alanda yaşam boyu öğrenmenin gerekliliği bilinciyle bilim ve teknolojideki gelişmeleri izleyerek kendini sürekli yenileyip edindiği bilgi ve becerileri eleştirel olarak değerlendirir.
X
7
Uluslararası ticaret ve finansman alanında teorik ve uygulamaya yönelik bilgileri kullanır
X
8
En az A1 düzeyinde bir yabancı dili kullanarak güncel teknolojileri takip eder, sözlü / yazılı iletişim kurar.
9
Örgüt / kurumsal, iş ve toplumsal etik değerlerini benimser ve kullanır.
10
Topluma hizmet duyarlılığı çerçevesinde, sosyal sorumluluk ilkelerini benimser ve gerektiğinde inisiyatif alır.
11
Disiplinler arası çalışmalar yürütebilmek için farklı disiplinlerde (ekonomi, finans, sosyoloji, hukuk, işletme) temel bilgileri ve verileri analiz ederek alanında kullanır.
X
12
Öğrenciler, küresel ticaret, ihracat-ithalat işlemleri, gümrük işlemleri ve dış ticaretin finansmanı alanlarında uzmanlık elde eder.
