COURSE UNIT TITLE

: FINANCIAL DERIVATIVES

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
FIN 4235 FINANCIAL DERIVATIVES ELECTIVE 3 0 0 5

Offered By

BUSINESS ADMINISTRATION

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR MÜBECCEL BANU DURUKAN SALI

Offered to

BUSINESS ADMINISTRATION
International Business and Trade
International Trade and Business (English)

Course Objective

This course aims to introduce the students to the mechanics of financial derivatives markets, futures prices, hedging and trading strategies using derivatives and option pricing.

Learning Outcomes of the Course Unit

1   Describe option pricing, pointing out its determinants.
2   Illustrate the relationship between spot and futures markets in order to determine futures prices.
3   Explain derivatives markets including forwards, futures, swaps and options, highlighting their mechanics and players.
4   Use futures and forwards contracts in order to form hedging strategies.
5   Select options contracts in order to construct trading strategies.
6   Apply the comparative advantage argument in order to design a swap in the absence or presence of a financial intermediary.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

FIN 2001 - FINANCIAL SYSTEM AND ENVIRONMENT

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Introduction to Financial Derivatives Markets
2 Mechanics of Futures and Forward Markets
3 Hedging Strategies Using Futures Contracts
4 Hedging Strategies Using Futures Contracts Determination of Forward and Futures Prices
5 Determination of Forward and Futures Prices
6 Swaps
7 Swaps
8 Mechanics of Options Markets
9 Properties of Options
10 Trading Strategies Involving Options
11 Trading Strategies Involving Options
12 Valuing Stock Options (Binomial Trees)
13 Valuing Stock Options (Black&Scholes Model)
14 Review

Recomended or Required Reading

Options, Futures and Other Derivatives. John, C. Hull. Prentice Hall. 9th Edition, 2018.

Planned Learning Activities and Teaching Methods

1. Lectures
2. Class discussion (the news and articles written in both domestic and global newspapers about current issues on finance and economy)
3. Solving the assigned cases and problems

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MT Midterm
2 QZ Quiz
3 FN Final
4 BNS BNS MT * 0.40 + QZ * 0.20 + FN * 0.40
5 BUT Bütünleme Notu
6 BBN Bütünleme Sonu Başarı Notu MT * 0.40 + QZ * 0.20 + BUT * 0.40


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will price options and identify its determinants.
2. The learner will describe the relationship between spot and futures markets and determine the futures prices.
3. The learner will define the mechanics of forwards, futures, swaps and options.
4. The learner will design hedging strategies by using futures and forwards.
5. The learner will select between different options to form trading strategies.
6. The learner will design a swap in the absence or presence of a financial intermediary.

Language of Instruction

English

Course Policies and Rules

1. Attending at least 70 percent of the lectures is mandatory.
2. Violations of plagiarism of any kind will result in a disciplinary action.

Contact Details for the Lecturer(s)

Prof. Dr. M. Banu Durukan
E-mail: banu.durukan@deu.edu.tr
Tel: 0232 3018112

Course Assistant: Elif Korkmaz
E-mail: elif.korkmaz@deu.edu.tr

Office Hours

Prof. Dr. M. Banu Durukan

Tuesday 10:00-12:00 or by appointment

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 14 3 42
Preparations before/after weekly lectures 12 2 24
Preparing assignments 0 0 0
Preparation for midterm exam 1 20 20
Preparation for final exam 1 20 20
Preparation for quiz etc. 2 10 20
Preparations before/after weekly lectures 0 0 0
Final 1 1,5 2
Midterm 1 1,5 2
Quiz etc. 2 1 2
TOTAL WORKLOAD (hours) 132

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10PO.11PO.12PO.13PO.14PO.15
LO.153
LO.253
LO.353
LO.4533
LO.5533
LO.65

CONTACT INFORMATION
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Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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