ECONOMICS AND FINANCE
Bachelor TR-NQF-HE: Level 6 QF-EHEA: First Cycle EQF-LLL: Level 6

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
IF4313 Derivative Markets Fall 3 0 3 6
The course opens with the approval of the Department at the beginning of each semester

Basic information

Language of instruction: En
Type of course: Must Course
Course Level: Bachelor
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Course Lecturer(s): Prof. Dr. ASLI YÜKSEL
Course Objectives: To provide a basic understanding of derivative-related financial instruments (forwards, futures and options) and their use in investment and corporate financial management.

Learning Outputs

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

Future markets, forward markets, swaps, option market

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction To read the related chapter in the text book
2) Mechanics of Futures Markets To read the related chapter in the text book
3) Hedging strategies using futures To read the related chapter in the text book
4) Hedging strategies using futures To read the related chapter in the text book
5) Interest rates To read the related chapter in the text book
6) Midterm I To read the text book and lecture notes for the exam
7) Determinants of forward and future prices To read the related chapter in the text book
8) Determinants of forward and future prices To read the related chapter in the text book
9) Interest rate futures To read the related chapter in the text book
10) Swaps To read the related chapter in the text book
11) Swaps To read the related chapter in the text book
12) Midterm II To read the text book and lecture notes for the exam
13) Mechanics of option markets To read the related chapter in the text book
14) Valuing stock options To read the related chapter in the text book

Sources

Course Notes: Text book: Fundamentals of Futures and Options Markets Author: John Hull Edition: 7th, 2011 Company: Pearson Education Limited
References: Text book: Fundamentals of Futures and Options Markets Author: John Hull Edition: 7th, 2011 Company: Pearson Education Limited

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Attendance % 0
Laboratory % 0
Application % 0
Field Work % 0
Special Course Internship (Work Placement) % 0
Quizzes % 0
Homework Assignments % 0
Presentation % 0
Project % 0
Seminar % 0
Midterms 2 % 60
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

ECTS / Workload Table

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 2 28
Presentations / Seminar 0 0 0
Project 0 0 0
Homework Assignments 0 0 0
Quizzes 0 0 0
Preliminary Jury 0 0 0
Midterms 2 25 50
Paper Submission 0 0 0
Jury 0 0 0
Final 1 30 30
Total Workload 150

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) Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works. 3
2) Understand the common as well as distinctive characters of the markets, industries, market regulations and policies. 3
3) Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events. 4
4) Analyze the interventions of politics to the economics and vice versa. 4
5) Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches. 4
6) Understand current and new economic events and how the new approaches to the economics are formed and evaluating. 3
7) Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form. 3
8) Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence. 3
9) Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments. 4
10) Understand the information and changes related to the economy by using a foreign language and communicate with colleagues. 4