COURSE DESCRIPTION AND APPLICATION INFORMATION
| Course Name | Code | Semester | T+A+L (hour/week) | Type (C / O) | Local Credit | ECTS |
|---|---|---|---|---|---|---|
| Financial Derivatives | ITF 411 | Spring | 03+00+00 | Compulsory | 3 | 6 |
| Academic Unit: | International Trade and Finance |
| Mode of Delivery: | Face to face |
| Prerequisites: | none |
| Language of Instruction: | English |
| Level of Course Unit: | Undergraduate |
| Course Coordinator: | - - |
| Course Objectives: | The course aims to teach fundamental concepts, methods and approaches about the financial derivatives and their uses in the financial environments. The emphasis is on the development of a basic knowledge and analytical skills about the markets, contracts , functions and use of the financial derivatives in the financial risk management area at the individual and institutional levels. |
| Course Contents: | This course provides students with the concepts of financial risks and financial derivatives. Forwards, futures, options, swaps and other financial derivatives are considered as the core derivative instruments. The mechanics of the derivative markets, derivative contracts, hedging, arbiraging and diversification strategies, value and pricing of the derivatives are the essential learning elements of the course. |
| Learning Outcomes of the Course Unit (LO): |
|
| Planned Learning Activities and Teaching Methods: | This course provides students with the concepts of financial risks and financial derivatives. Forwards, futures, options, swaps and other financial derivatives are considered as the core derivative instruments. The mechanics of the derivative markets, derivative contracts, hedging, arbiraging and diversification strategies, value and pricing of the derivatives are the essential learning elements of the course. |
WEEKLY SUBJECTS AND RELATED PREPARATIONS
| Week | Subjects | Related Preperation |
|---|---|---|
| 1 | Concept of financial derivatives | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 2 | Forwards | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 3 | Futures | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 4 | Value and pricing of forwards and futures | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 5 | Hedging and arbitrage strategies | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 6 | Interest rates and interest rate futures | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 7 | Mechanics of option markets | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 8 | Several properties and trading strategies for options | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 9 | Value and pricing of options | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 10 | Value and pricing of options | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 11 | Interest rate derivatives | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 12 | Swaps and hedging | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 13 | Swaps on several underlying assets | Having the basic skills of payoff valuation and pricing of financial derivatives |
| 14 | Case Studies | Having the basic skills of payoff valuation and pricing of financial derivatives |
At Kadir Has University, a Semester is 14 weeks; The weeks 15 and 16 are reserved for final exams.
REQUIRED AND RECOMMENDED READING
| Derivatives: Principles and Practice R.K.Sundaram, S.R.Das McGraw-Hill, 2011 |
OTHER COURSE RESOURCES
| Options, Futures and Other Derivatives (8E) John C. Hull Pearson, 2012 Derivatives:Valuation and Risk Management David A. Dubofsky, Thomas W. Miller Jr. Oxford University Press, 2003 |
ASSESSMENT METHODS AND CRITERIA
| Semester Requirements | Number | Percentage of Grade (%) |
|---|---|---|
| Homework Assignments | 4 | 20 |
| Midterms / Oral Exams / Quizes | 1 | 40 |
| Final Exam | 1 | 40 |
| Total: | 6 | 100 |
WORKLOAD
| Events | Count | Duration (Hours) | Total Workload (hour) |
|---|---|---|---|
| Course Hours | 36 | 1 | 36 |
| Laboratory | 6 | 1 | 6 |
| Homework Assigments | 4 | 7 | 28 |
| Midterms / Oral Exams / Quizes | 1 | 40 | 40 |
| Final Exam | 1 | 40 | 40 |
| Total Workload (hour): | 150 | ||
1 ECTS = 25 Hours Workload
THE RELATIONSHIP BETWEEN COURSE LEARNING OUTCOMES (LO) AND PROGRAM QUALIFICATIONS (PQ)
| # | PQ1 | PQ2 | PQ3 | PQ4 | PQ5 | PQ6 | PQ7 | PQ8 | PQ9 |
| LO1 | |||||||||
| LO2 | |||||||||
| LO3 | |||||||||
| LO4 |
Contribution: 1 Low, 2 Average, 3 High