APPLIED MATHEMATICS (TURKISH, THESIS) | |||||
Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 |
Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
MAT5024 | Risk Management | Spring | 3 | 0 | 3 | 8 |
The course opens with the approval of the Department at the beginning of each semester |
Language of instruction: | Tr |
Type of course: | Departmental Elective |
Course Level: | |
Mode of Delivery: | Face to face |
Course Coordinator : | Prof. Dr. İRİNİ DİMİTRİYADİS |
Course Objectives: | This course aims to provide the road maps to manage the interest rate risks and to measure the sensitivity of fixed income tools due to varying interest rate. The course will also give information on option contracts, futures and how those tools are used to manage financial risks. |
The students who have succeeded in this course; Students will learn the impact of interest rates on the fixed income securities and applications of financial risk management and hedging by using options and futures contracts. |
Interaction between fixed income securities and interest rates, Option and Futures Contracts, Definition and Applications. |
Week | Subject | Related Preparation | |
1) | What are bonds? Their characteristics, types and financial transactions. | ||
2) | Bond Pricing and Yield Rate | ||
3) | Interest Rate Risk. Duration and convexity to measure bond risk. | ||
4) | Interest rate risk management for bond portfolios. | ||
5) | Option Contracts: Definition and Transactions | ||
6) | Option Contracts (cont.) | ||
7) | Cash flows and profitability diagrams of various investment positions by using option contracts | ||
8) | Option Pricing | ||
9) | Option Pricing (cont.) | ||
10) | Futures Contracts and Financial Transactions | ||
11) | Financial Risk Management by using Futures Contracts | ||
12) | Determining the Optimal Contract Number in Hedging | ||
13) | Basis Risk Concept | ||
14) | Review |
Course Notes: | Options, Futures and Other Derivatives, John C. Hull, Prentice Hall; 6 edition |
References: |
Semester Requirements | Number of Activities | Level of Contribution |
Attendance | 14 | % 10 |
Laboratory | % 0 | |
Application | % 0 | |
Field Work | % 0 | |
Special Course Internship (Work Placement) | % 0 | |
Quizzes | 2 | % 10 |
Homework Assignments | 1 | % 10 |
Presentation | % 0 | |
Project | % 0 | |
Seminar | % 0 | |
Midterms | 1 | % 30 |
Preliminary Jury | % 0 | |
Final | 1 | % 40 |
Paper Submission | % 0 | |
Jury | % 0 | |
Bütünleme | % 0 | |
Total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 60 | |
PERCENTAGE OF FINAL WORK | % 40 | |
Total | % 100 |
Activities | Number of Activities | Duration (Hours) | Workload |
Course Hours | 14 | 3 | 42 |
Laboratory | 0 | 0 | 0 |
Application | 0 | 0 | 0 |
Special Course Internship (Work Placement) | 0 | 0 | 0 |
Field Work | 0 | 0 | 0 |
Study Hours Out of Class | 14 | 8 | 112 |
Presentations / Seminar | 2 | 2 | 4 |
Project | 0 | 0 | 0 |
Homework Assignments | 3 | 8 | 24 |
Quizzes | 2 | 1 | 2 |
Preliminary Jury | 0 | ||
Midterms | 2 | 3 | 6 |
Paper Submission | 0 | ||
Jury | 0 | ||
Final | 1 | 10 | 10 |
Total Workload | 200 |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Ability to assimilate mathematic related concepts and associate these concepts with each other. | |
2) | Ability to gain qualifications based on basic mathematical skills, problem solving, reasoning, association and generalization. | |
3) | Be able to organize events, for the development of critical and creative thinking and problem solving skills, by using appropriate methods and techniques. | |
4) | Ability to make individual and team work on issues related to working and social life. | |
5) | Ability to transfer ideas and suggestions, related to topics about his/her field of interest, written and verball. | |
6) | Ability to use mathematical knowledge in technology. | |
7) | To apply mathematical principles to real world problems. | |
8) | Ability to use the approaches and knowledge of other disciplines in Mathematics. | |
9) | Be able to set up and develope a solution method for a problem in mathematics independently, be able to solve and evaluate the results and to apply them if necessary. | |
10) | To be able to link abstract thought that one has to concrete events and to transfer the solutions and examine and interpret the results scientifically by forming experiments and collecting data. | |
11) | To be able to conduct a research either as an individual or as a team member, and to be effective in each related step of the project, to take role in the decision process, to plan and manage the project by using time effectively. | |
12) | To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself, |