Description of Individual Course Units
Course Unit CodeCourse Unit TitleType of Course UnitYear of StudySemesterNumber of ECTS Credits
1301007362017DERIVATIVE MARKETS AND INSTRUMENTSElective365
Level of Course Unit
First Cycle
Objectives of the Course
This course analyzes the characteristics of the most important financial derivative instruments such as forwards, futures, swaps, and options. Particularly, the course provides students with the essential techniques applied in valuing financial derivatives and hedging risk exposures. It emphasizes general principles such as no-arbitrage arguments and risk-neutral valuation and their implications in the pricing of financial derivatives. we focus more on trading strategies, applications and empirical findings. The various contracts are discussed in the context of stock and money market instruments as their underlying.
Name of Lecturer(s)
Learning Outcomes
1To be able to understand basic financial derivative market concepts
2To be able to interpret pricing of financial derivatives
3To be able to analyze the characteristics of the most important financial derivative instruments.
4To be able to make policy suggestions for financial derivative markets
5To be able to make applications in terms of financial derivative markets.
Mode of Delivery
Face to Face
Prerequisites and co-requisities
None
Recommended Optional Programme Components
None
Course Contents
Financial derivative markets, forwards futures, swaps and options, hedge funds, pricing of financial derivative markets, trading strategies, applications.
Weekly Detailed Course Contents
WeekTheoreticalPracticeLaboratory
1Introductory meeting Basic concepts
2Derivative markets and instruments
3Derivative markets and instruments
4Financial Forwards and Futures
5Financial Forwards and Futures
6Hedging concepts and applications
7Hedging concepts and applications
8Mid-term Exam
9Swaps
10Swaps
11Properties of Options
12Properties of Options
13Options pricing models
14Options pricing models
15Option trading strategies
16Final Exam
Recommended or Required Reading
Larry Neal ‘The Economics of Europe and the European Union’, Cambridge University press Mike Artis, Frederick Nixson ‘The economics of the European Union, Policy and analysis Oxford pres, 2007.
Planned Learning Activities and Teaching Methods
Assessment Methods and Criteria
Term (or Year) Learning ActivitiesQuantityWeight
SUM0
End Of Term (or Year) Learning ActivitiesQuantityWeight
SUM0
SUM0
Language of Instruction
Turkish
Work Placement(s)
None
Workload Calculation
ActivitiesNumberTime (hours)Total Work Load (hours)
Midterm Examination122
Final Examination122
Attending Lectures16348
Project Preparation8216
Self Study10220
Individual Study for Homework Problems818
Individual Study for Mid term Examination12020
Individual Study for Final Examination13030
TOTAL WORKLOAD (hours)146
Contribution of Learning Outcomes to Programme Outcomes
PO
1
PO
2
PO
3
PO
4
PO
5
PO
6
PO
7
PO
8
PO
9
PO
10
LO14         
LO2  5      3
LO3         4
LO44  4      
LO5         5
* Contribution Level : 1 Very low 2 Low 3 Medium 4 High 5 Very High
 
Ege University, Bornova - İzmir / TURKEY • Phone: +90 232 311 10 10 • e-mail: intrec@mail.ege.edu.tr