ACTUARIAL SCIENCE (TURKISH, NON-THESIS) | |||||
Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 |
Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
FIN5231 | Derivatives | Fall Spring |
3 | 0 | 3 | 7 |
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
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. |
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 |
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 |
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. |
Course Notes / Textbooks: | John Hull. 2011. Fundamentals of Futures and Options Markets. Pearson, Seventh Edition. |
References: | . |
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 |
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 |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Acquire the quantitative skills to become an actuary. | |
2) | Will know about risks and ways to manage risk. | |
3) | Will know about financial planning and its role in actuarial management. | |
4) | Will be able to design new products and carry profitability tests and scenario analyses. | |
5) | Besides gaining competence in theoretical subjects, the graduate will also be aware of practical issues and applications through lecturers and instructors who have market experience. | |
6) | Will be able to follow all innovations and carry on research on the particular area. | |
7) | Will share information with colleagues and will use it for project development.. | |
8) | Will be able to apply and make the necessary adaptation to all new rules and regulations. |