| Course Unit Code | Course Unit Title | Type of Course Unit | Year of Study | Semester | Number of ECTS Credits | | İKT3082013201 | FINANCIAL ECONOMICS | Compulsory | 3 | 6 | 4 |
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| Level of Course Unit |
| First Cycle |
| Objectives of the Course |
| To be able to define the financial economy and explain the operation of the financial system |
| Name of Lecturer(s) |
| öğretim görevlisi Hüseyin KOÇAK |
| Learning Outcomes |
| 1 | •Demonstrate an understanding of the underlying principles of the financial economics | | 2 | •Recognize, and apply theories of financial economics, evaluate under what kind of conditions and assumptions theories can be applied and if theories are consistent with the empirical observations | | 3 | •Analyze behaviour of financial markets and pricing of financial instruments by applying theories of financial economics, and to report the analysis results | | 4 | •Demonstrate the ability to solve problems involving understanding of the concepts. | | 5 | •Contribute to the theory and research in the disciplines of economics and/or finance. |
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| Mode of Delivery |
| Formal Education |
| Prerequisites and co-requisities |
| None |
| Recommended Optional Programme Components |
| None |
| Course Contents |
| The functioning of excess savings, savings deficit, financial instruments, financial intermediaries and regulatory supervisory institutions included in the definition of the financial system. Mathematical problems used in financial markets. |
| Weekly Detailed Course Contents |
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| 1 | Microeconomic Foundations of Financial Economics Decision under Uncertainty and Risk Expected Utility Theory | | | | 2 | Mean-Variance Theory Prospect Theory Risk Measures of Risk Aversion | | | | 3 | Mean-Variance Analysis | | | | 4 | Optimal Portfolios | | | | 5 | Equilibrium Prices and Allocations | | | | 6 | An Economy with Uncertainty | | | | 7 | Midterm | | | | 8 | Binomial Model: One risky asset and two states | | | | 9 | FİRST EXAM | | | | 10 | The Notion and Existence of Financial Equilibrium | | | | 11 | The Arbitrage and Asset Valuation First and Second Fundamental Theorem of Finance | | | | 12 | Risk-Neutral Probabilities One period many assets | | | | 13 | Multi-period models Multi-period models in option pricing | | | | 14 | Black-Scholes (BS) model Using BS in mortgage pricing | | | | 15 | An Evaluation of the Global Financial Crisis | | | | 16 | FINAL | | |
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| Recommended or Required Reading |
| 1. Principles of Financial Economics. Leroy S.F., Werner J., Ross S.A. , Cambridge University Press (2000) 2. Financial Economics. Eichberger J. , Harper I. R., Oxford University Press (1997) 3. Options, Futures and other Derivative Securities. Hull, J.C. , Prentice Hall (2011) eighth edition. 4. Introduction to Mathematical Finance- Discrete Time Models. Pliska S.R. Blackwell (1998) |
| Planned Learning Activities and Teaching Methods |
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| Assessment Methods and Criteria | |
| SUM | 0 | |
| SUM | 0 | | Yarıyıl (Yıl) İçi Etkinlikleri | 40 | | Yarıyıl (Yıl) Sonu Etkinlikleri | 60 | | SUM | 100 |
| | Language of Instruction | | Turkish | | Work Placement(s) | | None |
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| Workload Calculation |
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| Midterm Examination | 1 | 1 | 1 |
| Final Examination | 1 | 1 | 1 |
| Quiz | 4 | 3 | 12 |
| Attending Lectures | 12 | 2 | 24 |
| Discussion | 12 | 2 | 24 |
| Question-Answer | 12 | 1 | 12 |
| Brain Storming | 12 | 2 | 24 |
| Criticising Paper | 10 | 2 | 20 |
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| Contribution of Learning Outcomes to Programme Outcomes |
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| * Contribution Level : 1 Very low 2 Low 3 Medium 4 High 5 Very High |
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