| Course Name | Basic Derivative Products and Markets |
| Code | Semester | Theory (hour/week) | Application/Lab (hour/week) | Local Credits | ECTS |
|---|---|---|---|---|---|
| DOE 501 | Fall/Spring | 3 | 0 | 3 | 5 |
| Prerequisites | None | |||||
| Course Language | English | |||||
| Course Type | Elective | |||||
| Course Level | Second Cycle | |||||
| Mode of Delivery | - | |||||
| Teaching Methods and Techniques of the Course | ||||||
| Course Coordinator | ||||||
| Course Lecturer(s) | ||||||
| Assistant(s) | ||||||
| Course Objectives | Students gain a thorough understanding of options, futures, and other financial instruments. Skills are developed in basic pricing analysis, use of pricing models, and trading and hedging strategies. Students are first introduced to the basic techniques for pricing, hedging, and other analysis. Next, these techniques will be applied through an introduction of hedging strategies. The end goal is to develop skills which the students can apply in derivative markets. |
| Learning Outcomes | The students who succeeded in this course;
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| Course Description | This course examines the purpose and function of derivative markets and instruments, the evolution and future of derivative markets, market participants, exchange traded versus overthecounter markets (OTC), the suite of exchange traded products, selected OTC products, derivative pricing, risk management with derivatives, trading, arbitrage and speculation with derivatives, the use of derivatives in alternative investing. The course will incorporate theory, practice, and experiential learning and will include team projects. |
| Related Sustainable Development Goals |  |
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| Core Courses | |
| Major Area Courses | ||
| Supportive Courses | X | |
| Media and Managment Skills Courses | ||
| Transferable Skill Courses |
| Week | Subjects | Required Materials |
| 1 | Introduction for the lecture & Academic Honesty | Lecturer’s Own Notes |
| 2 | Risk Concept and History of Derivatives | Lecturer’s Own Notes |
| 3 | Introduction | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 1 |
| 4 | Mechanics of Futures Markets | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 2 |
| 5 | Mechanics of Futures Markets and Hedging Strategies using Futures | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 2-3 |
| 6 | Determination of Forward and Futures Prices | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 5 |
| 7 | Determination of Forward and Futures Prices (contd) | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 5 |
| 8 | Swaps | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 7 |
| 9 | Mid-term Exam | |
| 10 | Securitization and the Credit Crisis of 2007 | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 8 |
| 11 | Mechanics of Options | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 9 |
| 12 | Trading Strategies Involving Options | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 10 |
| 13 | Properties of Stock Options | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 - Chapter 11 |
| 14 | Topic Presentations | |
| 15 | Review of the Semester | |
| 16 | Review of the Semester |
| Course Notes/Textbooks | Hull, John C. Options, Futures, and Other Derivatives, 8th Edition, Pearson, 2012 |
| Suggested Readings/Materials | Fundamentals of Futures and Options Markets, John C. Hull, 2011, Pearson |
| Semester Activities | Number | Weigthing |
| Participation | ||
| Laboratory / Application | ||
| Field Work | ||
| Quizzes / Studio Critiques | ||
| Portfolio | ||
| Homework / Assignments | 1 | 15 |
| Presentation / Jury | 1 | 15 |
| Project | ||
| Seminar / Workshop | ||
| Oral Exam | ||
| Midterm | 1 | 30 |
| Final Exam | 1 | 40 |
| Total |
| Weighting of Semester Activities on the Final Grade | 60 | |
| Weighting of End-of-Semester Activities on the Final Grade | 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 | 16 | 4 | 64 |
| Field Work | |||
| Quizzes / Studio Critiques | |||
| Portfolio | |||
| Homework / Assignments | |||
| Presentation / Jury | 1 | ||
| Project | 1 | 14 | |
| Seminar / Workshop | |||
| Oral Exam | |||
| Midterms | 1 | ||
| Final Exams | 1 | 24 | |
| Total | 150 |
| # | Program Competencies/Outcomes | * Contribution Level | ||||
1 | 2 | 3 | 4 | 5 | ||
| 1 | To be able to contribute to the science by improving the knowledge in the field with a level of sufficient expertise based on the qualifications of the master degree. | X | ||||
| 2 | To be able to identify, analyze and interpret the oriented problems of the financial science and the business world. | X | ||||
| 3 | To be able to develop a unique idea, method or application in the field of finance. | X | ||||
| 4 | To be able to transform knowledge in the field to an academic research by mastering existing theory and research in its field. | X | ||||
| 5 | To be able to gain effective communication skills that enables to express the original research results and opinions in the field of finance at scientific meetings and/or within the expert community. | X | ||||
| 6 | To be able to use the results of scientific studies conducted in the field, in relevant refereed journals while publicising them or presenting them in scientific meetings while disseminating knowledge gained. | X | ||||
| 7 | To be able to analyze and resolve national and international developments and its influences on markets with an interdisciplinary perspective. | X | ||||
| 8 | To be able to conduct independent research. | X | ||||
| 9 | To be able to demonstrate ethical values in the stages of collection, interpretation, dissemination and application of data related to finance field. | X | ||||
| 10 | To be able to prepare an original thesis / term project in accordance with the criteria related to the field of finance. | |||||
| 11 | To be able to use a foreign language to follow information about the field of finance and participate in discussions in academic environments. | |||||
*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest
