CAPITAL MARKETS AND FINANCE (ENGLISH, NON-THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
FIN5231 Derivatives Fall 3 0 3 7
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : HANDE SAĞLAM
Course Lecturer(s): Dr. VEDAT KAMİL GÜVEN
Prof. Dr. ÜMİT EROL
Recommended Optional Program Components: None
Course Objectives: To provide understanding of derivative-related financial instruments (forwards, futures and options) and their use in investment and corporate financial management.

Learning Outcomes

The students who have succeeded in this course;
I. To learn types of traders in derivative markets
II. To understand mechanics of future and forward markets
III. To learn the differences between future and forward contracts
IV. to calculate prices of forward and future contracts
V. To understand mechanics of option markets
VI. To calculate price of option contracts
VII. To learn currency swaps

Course Content

Week 1: Introduction
Week 2: Mechanics of Futures Markets
Week 3: Hedging strategies using futures
Week 4: Hedging strategies using futures
Week 5: Interest rates
Week 6: Midterm I
Week 7: Determinants of forward and future prices
Week 8: Determinants of forward and future prices
Week 9: Interest rate futures
Week 10: Swaps
Week 11: Swaps
Week 12: Midterm II
Week 13: Mechanics of option markets
Week 14: Valuing stock options

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
2) Mechanics of Futures Markets John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
3) Hedging strategies using futures John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
4) Hedging strategies using futures John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
5) Interest rates John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
6) Midterm I John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
7) Determinants of forward and future prices John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
8) Determinants of forward and future prices John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
9) Interest rate futures John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
10) Swaps John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
11) Swaps John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
12) Midterm II John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
13) Mechanics of option markets John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
14) Valuing stock options John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.

Sources

Course Notes / Textbooks: John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition.
References: .

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Midterms 2 % 60
Final 1 % 40
Total % 100
PERCENTAGE OF SEMESTER WORK % 60
PERCENTAGE OF FINAL WORK % 40
Total % 100

ECTS / Workload Table

Activities Number of Activities Workload
Course Hours 14 42
Study Hours Out of Class 14 116
Midterms 2 4
Final 1 2
Total Workload 164

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Identify complex problems and arguments and analyze those using the theoretical tools and quantitative methods of economics and finance. 4
2) Provides a strong conceptual understanding of finance, combined with an understanding of the workings of financial markets and institutions. 5
3) The program ensures an understanding of relationship between financial theory and its practices. 5