Information Package / Course Catalogue
Derivative Instruments
Course Code: UTIF323
Course Type: Required
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 5
Objectives of the Course

The aim of this course is to teach the fundamental characteristics, operations, and pricing mechanisms of derivative products used in financial markets. It focuses on both the theoretical structure and practical applications of contracts such as forwards, futures, options, and swaps. By the end of the course, the participant develops a foundational knowledge and practical competence in the use of derivatives for hedging, speculation, and arbitrage.

Course Content

This course covers the definition and structure of derivative products, forward and futures contracts, types and pricing of options, swap agreements, hedging strategies, and the cost of carry concept. It also explores option strategies, arbitrage opportunities, and the institutional structure of futures and options exchanges. The participant gains both theoretical and practical knowledge of the functions of these instruments.

Name of Lecturer(s)
Lec. Bülent YILDIZ
Learning Outcomes
1.Explains the basic concepts of derivative products and understands their role in financial markets.
2.Analyzes the structure and mechanics of forward, futures, options, and swap contracts.
3.Applies pricing methods of derivative products and interprets them using market data.
4.Uses derivative instruments for hedging, speculation, and arbitrage purposes.
5.Evaluates the operation of futures and options exchanges and explains trading procedures.
Recommended or Required Reading
1.Türev Piyasalar e Türev Araçlar, Dr. Öğr. Üyesi Beyhan Yaslıdağ, Seçkin Yayıncılık, 2.Baskı Temmeuz 2021
2.Finansal Risk Yönetimi, Prof. Dr. Burak Saltoğlu, Yazarın Kendi Yayını, 1.Baskı, Ocak 2020
3.Türev Ürünler ve Vadeli İşlemler Piyasaları – Prof. Dr. Halil Seyidoğlu
4.Options, Futures, and Other Derivatives – John C. Hull (Global standard textbook)
5.Derivatives Markets – Robert L. McDonald
6.Fundamentals of Futures and Options Markets – John C. Hull
Weekly Detailed Course Contents
Week 1 - Theoretical
Introduction to Derivative Products and Market Structure
Week 2 - Theoretical
Fundamentals of Forward Contracts
Week 3 - Theoretical
Applications and Valuation of Forward Contracts
Week 4 - Theoretical
Structure and Mechanics of Futures Contracts
Week 5 - Theoretical
Pricing of Futures Contracts and Application Examples
Week 6 - Theoretical
Introduction to Options: Concepts and Types
Week 7 - Theoretical
Option Valuation and the Black-Scholes Model
Week 8 - Theoretical
Option Strategies I – Hedging Use
Week 9 - Theoretical
Option Strategies II – Speculative and Income Strategies
Week 10 - Theoretical
Introduction to Swaps and Their Types
Week 11 - Theoretical
Applications of Interest Rate and Currency Swaps
Week 12 - Theoretical
Risk Management Using Derivatives
Week 13 - Theoretical
Cost of Carry, Arbitrage Opportunities, and Market Efficiency
Week 14 - Theoretical
Futures and Options Exchanges: Structure, Regulation, Oversight
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory142370
Midterm Examination125126
Final Examination130131
TOTAL WORKLOAD (hours)127
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
PÇ-11
PÇ-12
OÇ-1
3
3
2
4
2
3
2
3
2
4
3
2
OÇ-2
2
2
3
2
3
2
4
2
3
2
1
2
OÇ-3
3
3
2
4
2
1
2
3
2
4
2
1
OÇ-4
1
1
2
1
2
3
2
4
2
3
3
2
OÇ-5
2
2
3
2
4
2
1
2
3
3
2
3
Adnan Menderes University - Information Package / Course Catalogue
2026