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
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.
Course Description 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 Content 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
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
Study Hours Out of Class
14
6
Field Work
Quizzes / Studio Critiques
Homework / Assignments
Presentation / Jury
Project
1
30
Seminar / Workshop
Oral Exam
Midterms
1
20
Final Exam
    Total
182

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

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

To improve and deepen actual and advanced level knowledge in economics in the level of expertise by inventive thoughts and/or research and to get inventive contributions to science.

X
2

To comprehend the interaction between economics and related fields; to achieve inventive results by using knowledge requiring expertise in analysis, synthesis and evaluation of new and complex ideas.

3

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

X
4

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

5

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

6

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

X
7

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

X
8

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

X
9

To possess the communication network to put the economic and social needs of the region of residence on the agenda.

10

To have adequate social responsibility and conciousness about the needs of society and to have the experience and authority  to organize and support the operations that can affect and drive  the social dynamics when necessary.

11

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

X
12

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

13

To be able to use the skills of modeling, empirical analysis and formulating policy options that are developed for financial economics, in interdisciplinary contexts.

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