GRADUATE SCHOOL

Financial Economics (Without Thesis)

ECON 514 | Course Introduction and Application Information

Course Name
Speculative Markets
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
ECON 514
Fall/Spring
3
0
3
7.5

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 The aim of this course is to introduce the students to financial instruments that are classified as derivatives and show how these instruments can be used for hedging different risks.
Learning Outcomes The students who succeeded in this course;
  • will be able to define futures.
  • will be able to define options.
  • will be able to list the derivative securities traded in TURKDEX.
  • will be able to describe how to hedge risks using futures and options.
  • will be able to give examples of trading strategies with futures and options.
Course Description In recent years there has been phenomenal growth in the markets for futures contracts on financial assets, as well as options on these assets. Derivatives enable firms and portfolio managers to hedge a variety of risks. This course introduces the student to forward contracts, futures and options and walks the student through the process of using these instruments to hedge different risks.

 



Course Category

Core Courses
Major Area Courses
Supportive Courses
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 Introduction
2 Financial forwards
3 Financial futures
4 Financial futures cont’d.
5 Commodity forwards/futures
6 Hedging with forwards/futures
7 Hedging with forwards/futures cont’d.
8 Swaps
9 Swaps cont’d.
10 Midterm
11 Options
12 American Options
13 European Options
14 Greeks
15 Final Exam
16 Review of the Semester  

 

Course Notes/Textbooks Options, Futures and Other Derivatives (6th edition), by John C Hull.
Suggested Readings/Materials

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
16
10
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
1
50
Seminar / Workshop
Oral Exams
Midterm
1
40
Final Exam
Total

Weighting of Semester Activities on the Final Grade
18
100
Weighting of End-of-Semester Activities on the Final Grade
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: '.16.' x total hours)
16
0
Study Hours Out of Class
16
6
96
Field Work
0
Quizzes / Studio Critiques
0
Portfolio
0
Homework / Assignments
0
Presentation / Jury
0
Project
1
30
30
Seminar / Workshop
0
Oral Exam
0
Midterms
1
20
20
Final Exam
0
    Total
194

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To improve and deepen expertise in economics and finance.

X
2

To be able to comprehend the interaction between economics, finance and related fields.

3

To be able to apply the advanced level knowledge acquired in economics and finance.

X
4

To be able to create new knowledge by combining the knowledge of finance and economics with the knowledge coming from other disciplines and be able to solve problems which requires expert knowledge by applying scientific methods.

5

To be able to use computer programs needed in the fields of economics and finance as well as information and communication technologies in advanced levels.

6

To be able to think analytically to identify problems in finance and economics and to be able to make policy recommendations in economics and finance based on scientific analysis of issues and problems.

X
7

To be able to develop new strategic approaches for unexpected, complicated situations in finance and economics and take responsibility in solving it.

X
8

To protect the social, scientific and ethical values at the data collection, interpretation and dissemination stages and to be able to institute and observe these values.

X
9

To be able to critically evaluate the knowledge in finance and economics, to lead learning and carry out advanced level research independently.

10

To be able to use a foreign language for both following scientific progress and for written and oral communication.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 


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