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 be able to demonstrate general business knowledge and skills.

2

To able to master the state-of-the-art literature in the area of specialization.

3

To be able to evaluate the performance of business organizations through a holistic approach.

4

To be able to effectively communicate scientific ideas and research results to diverse audiences.

5

To be able to deliver creative and innovative solutions to business-related problems.

6

To be able to solve business related problems using analytical and technological tools and techniques.

7

To be able to take a critical perspective in evaluating business knowledge.

8

 

To be able to exhibit an ethical and socially responsible behavior in conducting research and making business decisions.

9

To be able to carry out a well-designed independent and empirical research.

10

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