Course Detail
Course Description
Course | Code | Semester | T+P (Hour) | Credit | ECTS |
---|
FINANCIAL RISK and DERIVATIVE MARKETS | ECO4110837 | Fall Semester | 3+0 | 3 | 5 |
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 | | |
Teaching Methods: | 10: Discussion Method, 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
Assessment Methods: | A: Traditional Written Exam |
Course Outline
Order | Subjects | Preliminary Work |
---|
1 | Introduction | |
2 | Hedging Strategies Using Futures | |
3 | Interest Rates | |
4 | Determination of Forward and Futures Prices | |
5 | Interest Rate Futures | |
6 | Swaps, Securitization, and the Crisis | |
7 | Midterm | |
8 | Properties of Options | |
9 | Trading Strategies and Binomial Trees | |
10 | Pricing of Stock Options | |
11 | Options on Stock Indices, Currencies, and Futures | |
12 | The Greeks | |
13 | 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 | (S)he describes theoretical knowledge in economics and finance. | | | | | X |
2 | (S)he explains mathematical and statistical methods needed for economics and finance. | | | | X | |
3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | | | | | |
4 | (S)he has the foreign language proficiency necessary for economics and finance. | | | | | |
5 | (S)he develops projects in the field and handles team work. | | | | | |
6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | | | | | X |
7 | (S)he uses theoretical and practical knowledge on economics and finance. | | | | | X |
8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | | | | | |
9 | (S)he adopts and uses organizational, corporate and social ethical values. | | | | | |
10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | | | | | |
11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | | | | | |
12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | | | | | 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 | ECO4110837 | Fall Semester | 3+0 | 3 | 5 |
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 | | |
Teaching Methods: | 10: Discussion Method, 16: Question - Answer Technique, 6: Experiential Learning, 9: Lecture Method |
Assessment Methods: | A: Traditional Written Exam |
Course Outline
Order | Subjects | Preliminary Work |
---|
1 | Introduction | |
2 | Hedging Strategies Using Futures | |
3 | Interest Rates | |
4 | Determination of Forward and Futures Prices | |
5 | Interest Rate Futures | |
6 | Swaps, Securitization, and the Crisis | |
7 | Midterm | |
8 | Properties of Options | |
9 | Trading Strategies and Binomial Trees | |
10 | Pricing of Stock Options | |
11 | Options on Stock Indices, Currencies, and Futures | |
12 | The Greeks | |
13 | 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 | (S)he describes theoretical knowledge in economics and finance. | | | | | X |
2 | (S)he explains mathematical and statistical methods needed for economics and finance. | | | | X | |
3 | (S)he uses at least one computer program utilized for economic and financial analyses (SPSS, Eviews, STATA, R ve MATLAB). | | | | | |
4 | (S)he has the foreign language proficiency necessary for economics and finance. | | | | | |
5 | (S)he develops projects in the field and handles team work. | | | | | |
6 | (S)he develops (her) his awareness of lifetime learning, follows the developments in (her) his field and adopts a critical approach. | | | | | X |
7 | (S)he uses theoretical and practical knowledge on economics and finance. | | | | | X |
8 | (S)he delivers (her) his opinions by making effective use of modern technologies and of at least one foreign language at a minimum level of level C1. | | | | | |
9 | (S)he adopts and uses organizational, corporate and social ethical values. | | | | | |
10 | (S)he adopts principles of social responsibility and acts whenever needed in light of social service sensitivity. | | | | | |
11 | (S)he analyzes and uses basic knowledge and data regarding different disciplines to conduct inter-disciplinary studies. | | | | | |
12 | (S)he benefits from (her) his proficiency in economics and finance to make policy suggestions and contribute to the field. | | | | | X |
Assessment Methods
Contribution Level | Absolute Evaluation |
Rate of Midterm Exam to Success | | 40 |
Rate of Final Exam to Success | | 60 |
Total | | 100 |
Numerical Data
Ekleme Tarihi: 09/10/2023 - 08:45Son Güncelleme Tarihi: 09/10/2023 - 08:48
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