Faculty of Business and Management Sciences · International Trade and Finance (English) · Undergraduate
ECTS: 5 T+P+L: 3+0+0 Departmental Elective
Coordinator: Prof. Dr. Turan EROL
Instructors: Prof. Dr. Turan EROL
Course Objective
The aim of this course is to explain the basic techniques of financial risk management and instruments necessary to manage financial risks arising from interest, exchange rate and price changes.
Course Content
Organization of Futures Markets, Pricing of Futures Contracts, Financial Futures with Hedging and Speculation, Types of Forward Contracts, Basics of Option Markets, Types and Pricing of Swaps, Derivative Markets Strategies, Derivative Markets in Turkey
Course Learning Outcomes
- They will learn the differences and functioning of futures and forward markets.
- They will learn general information about option markets.
- They will learn derivative market strategies
Core Area Distribution
(34) Business and Administration%30 (46) Mathematics and Statistics%50 (54) Manufacturing and Processing%20
Teaching Methods
ExpressionQuestion-AnswerExercise and PracticeSelf studyProblem Solving
Assessment & Evaluation
Oral ExamTesting (Essay / Tests: True-Falls, multiple-choice, short answer, matching)
ECTS / Workload
| Activity | Quantity | Duration (h) | Total Workload |
|---|---|---|---|
| Course Duration (Including Exam Week) | 16 | 3 | 48 |
| Out of Class Study Period | 14 | 3 | 42 |
| Midterm | 1 | 10 | 10 |
| Quiz | 2 | 10 | 20 |
| Assignment | 0 | 0 | 0 |
| Practice | 0 | 0 | 0 |
| Final | 1 | 5 | 5 |
Course Schedule
| Week | Subject | Preparation |
|---|---|---|
| 1 | General Information About Futures Markets | Hull (Ch. 1) |
| 2 | How Futures Markets Works? | Hull (Bölüm 1) |
| 3 | Futures Contracts and Their Valuation | Hull (Ch. 1) |
| 4 | Financial Futures Hedging | Hull (Ch. 2) |
| 5 | Forward Contracts | Hull (Ch. 3) |
| 6 | Comparison of Futures and Forward Contracts | Hull (Ch. 1,3) |
| 7 | Option Markets | Hull (Ch. 4) |
| 8 | Midterm | Midterm |
| 9 | Buy Options | Hull (Ch. 4) |
| 10 | Options and Their Valuation | Hull (Ch. 4) |
| 11 | General Information About the Swap Markets | Hull (Ch. 5) |
| 12 | Swaps and Their Valuation | Hull (Ch. 5) |
| 13 | Derivative Market Strategies | Hull (Ch. 6) |
| 14 | Derivatives Market in Turkey | - |
| 15 | Case Study | - |
| 16 | Final exam | Final exam |