Thesis Type: Postgraduate
Institution Of The Thesis: Istanbul University, Institute Of Social Sciences, İşletme Fakültesi Bölümü, Turkey
Approval Date: 2019
Thesis Language: Turkish
Student: Erkan Haşim Bulut
Consultant: Murat KıyılarAbstract:
Especially in the last half century, financial markets in the World and in Turkey have developed dramatically with new vehicles which have joined to the market. The quests for new market instruments, the need for risk management and the aim of implementation of arbitrage and hedge have played an important role in this join. These needs in financial markets and especially the inadequacy of spot markets, led to the emergence of derivatives and the need for investors to trade with derivatives. The derivatives do not only contribute to development of financial markets but also enable Turkey’s financial markets to integrate with foreign markets. The share of derivatives, which are subject to significant amounts of sales in the world, have a significant increase in the Turkish economy. Therefore, the answers of the questions that what the derivative products are, what do they mean in terms of risk management and the futures markets and how do they serve the purpose of risk management have a great importance.
Although the attributing the financial system being implemented on the World to interest have great importance in terms of economic growth, the implementation of interest brings various risks in this regard. Implementation of interest which is the most important reason for the increasing divide between the real economy and the financial markets accounts for several systematic risks. Besides that, implementation of interest is not the only characteristic trait which distinguishes interest-free financial system from conventional system, there are several traits such as issues regarding to uncertainty, speculation and etc. have several differences.
In this work, the applicability of the derivative instruments in interest-free financial system which are very important financial products in terms of conventional financial system will be discussed. And it will be revealed to what extent these financial products are appropriate to the basic principles of interest-free finance system and which points are not suitable for interest-free financial system. In this study, the characteristics of the each derivatives and the principles of interest-free financial system will be evaluated separately; after that the conformity check will be carried out.