| Course Name | Introduction fo Mathematical Finance |
| Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
|---|---|---|---|---|---|
| MATH 321 | Fall/Spring | 3 | 0 | 3 | 5 |
| Prerequisites | None | |||||
| Course Language | English | |||||
| Course Type | Elective | |||||
| Course Level | - | |||||
| Mode of Delivery | - | |||||
| Teaching Methods and Techniques of the Course | ||||||
| Course Coordinator | - | |||||
| Course Lecturer(s) | ||||||
| Assistant(s) | ||||||
| Course Objectives | The aim of this course is to teach students the basic concepts and mathematical formulations of economic analysis and actuarial. |
| Learning Outcomes | The students who succeeded in this course;
|
| Course Description | In this course, students will learn about interest rates and income. In the course, when the arbitrage and its applications and economic evaluations are insufficient, the lessons will be taught. Mathematical modeling methods in finance are also among the topics of the course. |
| Related Sustainable Development Goals | |
|
| Core Courses | |
| Major Area Courses | ||
| Supportive Courses | X | |
| Media and Managment Skills Courses | ||
| Transferable Skill Courses |
| Week | Subjects | Required Materials |
| 1 | An Introduction to options and markets | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 2 | Derivatives and some terminologies | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 3 | Options | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 4 | Forward price, Put-Call parity | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 5 | Comparing Options With Respect to Style, Maturity, and Strike | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 6 | Binomial tree | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 7 | Midterm | |
| 8 | Binomial tree | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 9 | Introduction to probability theory | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 10 | Lognormal distributions and stochastic processes | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 11 | Brownian motion | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 12 | Ito’s Lemma | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 13 | Black-Scholes Equation | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 14 | Cash or Nothing and Gap options | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| 15 | Semester Review | |
| 16 | Final Exam |
| Course Notes/Textbooks | "Fundamentals of Future and Options Markets" by John C. Hull, Pearson, 9th Edition, 2016. ISBN-13: 978-0134083247 |
| Suggested Readings/Materials |
| Semester Activities | Number | Weigthing |
| Participation | ||
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | ||
| Presentation / Jury | ||
| Project | ||
| Seminar / Workshop | ||
| Oral Exam | ||
| Midterm | 2 | 60 |
| Final Exam | 1 | 40 |
| Total |
| Weighting of Semester Activities on the Final Grade | 2 | 60 |
| Weighting of End-of-Semester Activities on the Final Grade | 1 | 40 |
| Total |
| Semester Activities | Number | Duration (Hours) | Workload |
|---|---|---|---|
| Course Hours (Including exam week: 16 x total hours) | 16 | 3 | 48 |
| Laboratory / Application Hours (Including exam week: 16 x total hours) | 16 | ||
| Study Hours Out of Class | 14 | 3 | 42 |
| Field Work | |||
| Quizzes / Studio Critiques | |||
| Portfolio | |||
| Homework / Assignments | |||
| Presentation / Jury | |||
| Project | |||
| Seminar / Workshop | |||
| Oral Exam | |||
| Midterms | 2 | 20 | |
| Final Exams | 1 | 20 | |
| Total | 150 |
| # | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 | ||
| 1 | To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics. | |||||
| 2 | To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics. | |||||
| 3 | To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials. | X | ||||
| 4 | To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning. | X | ||||
| 5 | To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals. | |||||
| 6 | To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project. | X | ||||
| 7 | To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge. | |||||
| 8 | To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field. | |||||
| 9 | To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security. | |||||
| 10 | To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking. | |||||
| 11 | To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language. | |||||
| 12 | To be able to speak a second foreign language at a medium level of fluency efficiently. | |||||
| 13 | To be able to relate the knowledge accumulated throughout the human history to their field of expertise. | |||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
