Faculty of Business and Management Sciences · Islamic Economics and Finance (English) · Undergraduate
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
Required Resources
Hull, John C. Options, Futures, and Other Derivatives. 11th ed. Pearson, 2022.
Teker, Suat, and Özlen Teker. Finansal Risk Yönetimi ve Türev Ürünler. İstanbul: Beta Yayınları, 2022.
Recommended Resources
Ertuğrul, Kürşat. Türev Piyasalar: Vadeli İşlem ve Opsiyon Sözleşmeleri. Ankara: Seçkin Yayıncılık, 2021.
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
Teaching Methods
Assessment & Evaluation
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 |