COURSE UNIT TITLE

Offered By

Accounting and Finance (English)

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR DOCTOR PINAR EVRIM MANDACI

Offered to

Accounting and Finance (English)

Course Objective

The objective of this course is to introduce students the concept of risk management and financial derivatives. The course is designed to show how risk is regulated and how it is managed in financial markets.Specifically, it introduces students to the introductory statistical concepts used in measuring risk, and to concepts and applications relating to market, credit, operational, legal/regulatory and reputation risk. Further, the course aims to provide participants with a comprehensive understanding of the mechanics of financial derivatives markets, futures prices,hedging and trading strategies using financial derivatives. This is achieved through an introduction of the basic techniques of pricing and trading. The course also focuses on the usage of financial derivatives instruments for hedging and risk management

Learning Outcomes of the Course Unit

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Recomended or Required Reading

John Hull, Options, Futures and other Derivatives, 8 e., Prentice Hall, 2012
Peter L. Bernstein, Against the Gods: The Remarkable Story of Risk, 1998

Planned Learning Activities and Teaching Methods

Lecture, discussions, case studies, problem solving.

Assessment Methods

Further Notes About Assessment Methods

None

Assessment Criteria

1. The students will describe the different types of risks that organizations and individuals encounter
2. The students will explain the risk management process and evaluate Basel II/III for banking industry.
3. The students will define the mechanics of forwards, futures, swaps and options.
4. The students will adapt theoretical concepts to hedging strategies by using futures and forwards.
5. The students will design a swap in the absence or presence of a financial intermediary
6. The students will design strategy which incorporates the use of call and put options

Language of Instruction

English

Course Policies and Rules

1. Plagiarism of any type will result in disciplinary action.
2. Attending at least 70 percent of lectures is mandatory.
3. All assignments should be submitted on time. Otherwise will not be accepted.

Contact Details for the Lecturer(s)

Prof. Dr. M. Banu Durukan
banu.durukan(@)deu.edu.tr

Office Hours

Tuesday 12:00-13:00 or by appointment

Work Placement(s)

None

Workload Calculation

Contribution of Learning Outcomes to Programme Outcomes