INSTITUTE OF APPLIED MATHEMATICS
Last Updated:
28/08/2017 - 21:10

IAM520 - Financial Derivatives

Credit: 3(3-0); ECTS: 8.0
Instructor(s): Consent of IAM
Prerequisites: Consent of Instructor(s)

Course Catalogue Description

Introduction to Derivative and Financial Markets. The Structure of Options Markets. Principles of Option Pricing. Option Pricing Models. Basic Option Strategies. Advanced Option Strategies. The Structure of Forward and Futures Markets. Principles of Spot Pricing. Principles of Forward and Futures Pricing. Futures Hedging Strategies. Advanced Futures Strategies. Options on Futures. Foreign Currency Derivatives. Swaps and Other Interest Rate Agreements.

Course Objectives

This course is designed to provide a solid foundation in the principles of financial derivatives and risk management. It attempts to strike a balance between institutional details, theoretical foundations, and practical applications. The course equally emphasizes pricing and investment strategies in order to motivate students to start thinking about risk management in financial markets. Parallel to the already increasing attempts to integrate derivative securities and markets into the Turkish financial system, it is believed that this course will fill a gap and students will be exposed to a rather comprehensive coverage of theory and application in the derivatives area. This course is expected to give the students a “competitive advantage” when they enter the job market since “derivatives” is a “hot topic” nowadays and BA4825/5825/IAM520 is one of the very few courses offered on this topic in Turkey!

Course Learning Outcomes

Tentative (Weekly) Outline

This course is designed to provide a solid foundation in the principles of derivatives. It attempts to strike a balance between institutional details, theoretical foundations, and practical applications. Parallel to the already increasing attempts to integrate derivative securities and markets into the Turkish financial system, it is believed that this course will fill a gap in that students will be exposed to a rather comprehensive coverage of theory and application in the derivatives area.

More Info on METU Catalogue

Back