Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
3BNS 263Financial Risk and Derivatives Markets2+0+02326.10.2026
Course Details
Language of Instruction Turkish
Level of Course Unit Associate Degree
Department / Program Banking and Insurance
Type of Program Formal Education
Type of Course Unit Elective
Course Delivery Method Face To Face
Objectives of the Course To introduce financial risk types and derivative products, and to teach the operational mechanics of derivative markets along with hedging strategies using these financial instruments.
Course Content Financial risks: market risk, credit risk, liquidity risk, and operational risk. Risk measurement methods and Value at Risk (VaR). Derivative instruments: forwards, futures, options, and swaps. Fundamentals of derivative pricing. Hedging strategies. The Futures and Options Market (VIOP) in Türkiye. Operations and participants of derivative markets. Case study applications in risk management.
Course Methods and Techniques Lectures, numerical applications and examples, assignments, and examinations.
Prerequisites and co-requisities None
Course Coordinator None
Name of Lecturers Asist Prof.Dr.
Assistants None
Work Placement(s) No

Recommended or Required Reading
Resources Publications of the Borsa İstanbul Futures and Options Market (VIOP) (www.borsaistanbul.com).
Course Notes 1. The Concept of Financial Risk and Risk Types
2. Market Risk and Credit Risk
3.Liquidity Risk and Operational Risk
4. Risk Measurement Methods
5.Value at Risk (VaR)
6.Introduction to Derivative Products and Mechanics of Derivative Markets
7.Forward and Futures Contracts
8.MIDTERM EXAM WEEK
9.Options
10.Swaps
11.Fundamentals of Derivative Pricing
12.Hedging Strategies
13.Futures and Options Market (VIOP) in Türkiye
14.Risk Management Applications: Case Studies
15.Final Examination

Course Category
Social Sciences %100

Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Mid-terms 1 % 40
Final examination 1 % 60
Total
2
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Course Duration 14 2 28
Assignments 14 3 42
Mid-terms 1 8 8
Final examination 1 12 12
Total Work Load   Number of ECTS Credits 3 90

 
Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Defines market, credit, liquidity, and operational risks.
2 Applies risk measurement methods, primarily Value at Risk (VaR).
3 Explains the structure of forward, futures, option, and swap contracts, as well as the fundamentals of pricing.
4 Develops hedging strategies using derivative products.
5 Evaluates the operations and participants of the Futures and Options Market (VIOP) in Türkiye.

 
Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 The Concept of Financial Risk and Risk Types Reading Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
2 Market Risk and Credit Risk Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
3 Liquidity Risk and Operational Risk Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
4 Risk Measurement Methods Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
5 Value at Risk (VaR) Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
6 Introduction to Derivative Products and Mechanics of Derivative Markets Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
7 Forward and Futures Contracts Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
8 MIDTERM EXAM WEEK
9 Options Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
10 Swaps Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
11 Fundamentals of Derivative Pricing Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
12 Hedging Strategies Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
13 Futures and Options Market (VIOP) in Türkiye Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
14 Risk Management Applications: Case Studies Students are expected to review in advance the topics covered in the previous week and those to be addressed in the upcoming week, utilizing printed and digital resources as well as online content. Hull, J. C., Options, Futures, and Other Derivatives, Pearson. Borsa İstanbul Vadeli İşlem ve Opsiyon Piyasası (VİOP) yayınları (www.borsaistanbul.com).
15 Final Examination

 
Recommended Optional Programme Components
BNS 249 Financial Modeling
Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14
All 5 3 5 1 1 4 1 1 1 4
C1 5 3 5
C2 4 3 5
C3 5 3 4
C4 4 3 4
C5 4 4 5

  Contribution: 1: Very Slight 2:Slight 3:Moderate 4:Significant 5:Very Significant