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Course Code: 
AFN 417
Course Period: 
Autumn
Course Type: 
Core
P: 
3
Application: 
0
Credits: 
3
ECTS: 
6
Prerequisite Courses: 
Course Language: 
İngilizce
Course Objectives: 

To acquaint the students with different derivatives products and the methods used in their valuation.

Course Content: 

In this course, the student will discover the characteristics of the main derivatives markets and products: Options, Forward contracts, Future contracts and Swaps. Students will also discover the importance of derivatives products for managing risks.

Course Methodology: 
1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study
Course Evaluation Methods: 
A: Testing, B: Presentation, C: Homework, D:Project, E. Laboratory

Vertical Tabs

Course Learning Outcomes

Learning Outcomes

Program Learning Outcomes

Teaching Methods

Assessment Methods

1.To be able to distinguish between the different existing financial markets

1,2,5,4,6,7,8,9

1, 2, 3

A,C

2.To be able to explain the basic concepts related to the derivative financial instruments

1,4,5,7,8,9

1, 2, 3

A,C

3.To be able to  interpret financial data

1,4,5,7,8,9

1,2,3

A,C

4.To be able to select the appropriate derivative products to hedge risk

1,4,5

1,2,3

A,C

 
 

Course Flow

Week

Topics

Study Materials

1

Introduction to Derivatives

Textbook

2

Presentation of Classical Options

Textbook

3

Presentation of Combined Options

Textbook

4

Payoff and Profit of Option Contracts

Textbook

5

Insurance, Collars, and Other Strategies

Textbook

6

Mid-term exam

 

7

Introduction to risk management

Textbook

8

Derivatives and risk management

Textbook

9

Forward and future contracts

Textbook

10

Stock Index Futures

Textbook

11

Mid-term exam

 

12

Forward and Future contracts based on currency

Textbook

13

Forward and Future contracts based on currency

Textbook

14

 

15

Revision

 

Final

 

 
 

Recommended Sources

Textbook

“Fundamentals of Derivatives Markets” R. McDonald

Additional Resources

 Lecture notes

 
 

Material Sharing

Documents

Slides, lecture notes

Assignments

Homework assignments

Exams

Midterm Exam and Final Exam

 
 

Assessment

IN-TERM STUDIES

NUMBER

PERCENTAGE

Mid-terms

2

70

Quizzes

1

20

Assignment

1

10

Total

 

100

CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE

 

40

CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE

 

60

Total

 

100

 

 

COURSE CATEGORY

Expertise/Field Courses

 
 

Course’s Contribution to Program

 

COURSE'S CONTRIBUTION TO PROGRAM

       

 

No

Program Learning Outcomes

Contribution

 

 

 

1

2

3

4

5

1

To understand the core principles of finance and to be able to apply them both nationally and internationally.

 

 

 

 

 X

2

To effectively use contemporary information technologies and up-to-date financial instruments.

 

 

 

 X

 

3

To understand the ethics rules and the social responsibility mentality adopted by professional finance organizations and apply them in the decision-making process.

 X

 

 

 

 

4

To have the necessary background to be able to work in multicultural and multilingual environments.

 

 

 

 

 X

5

To be informed about markets and the factors affecting them, and to be able to analyse the developments in these markets.

 

 

 

 X

 

6

To recognize management tools and models specific to multinational companies and to be able to apply them where necessary.

 

 

 

 X

 

7

To understand the structure of the global economic system and to be able to analyse how new developments will affect this structure.

 

 

 

 X

 

8

To be able to use critical thinking ability in decision making process.

 

 

 

 

 X

9

To be able to transfer the leadership, teamwork and communication skills acquired to the lifelong learning process.

 

 

 

 

 

10

To be able to predict the opportunities and problems that may arise under dynamic working conditions and manage these using analytical and creative approaches.

 

 

 

 X

 

ECTS

Activities

Quantity

Duration
(Hour)

Total
Workload
(Hour)

Course Duration (Including the exam week: 16x Total course hours)

15

3

45

Hours for off-the-classroom study (Pre-study, practice)

15

4

60

Mid-terms / Quizzes

2+1

4+1

5

Homework

14

2

28

Final examination

1

2

2

Total Work Load

 

 

140

Total Work Load / 25 (h)

 

 

5.6

ECTS Credit of the Course

 

 

6

 

 

 

 

 
 
4