THE MASTER OF SCIENCE PROGRAM IN FINANCIAL ENGINEERING

The main objective of the program is to provide graduate level technical education to students who want to work in the new and growing finance industry. This includes investment banks and corporations, financial management and consulting companies, insurance companies and firms that invest in financial markets. Recent developments during the last decades have shown the need for an educational program whose graduates are equipped with the necessary tools and techniques to evaluate financial markets, determine investment strategies, as well as design, engineer and market new financial products. The topic has become more appealing with the emergence of new securities and financial instruments, like options, swaps, interest rate derivatives, credit derivatives and private retirement plans. A graduate of the program is expected to work not only in companies that market financial products, but also in the finance department of general service or manufacturing firms.

During the last few years, many respectable universities including Princeton University, Columbia University, Cornell University, University of California at Berkeley, and Carnegie Mellon, among many others, have instituted MS and ME programs in financial engineering. The reason is to satisfy the growing demand initiated by the finance industry for a new MS level education in the field. We will establish the first MS program in financial engineering in a Turkish university. The academic requirements of the program need the cooperation of several disciplines like economics, management, industrial engineering and mathematics. This is obtained through the establishment of a new program that is not already available as part of a graduate program in any university in Turkey.

Students will be exposed to a technically rigorous curriculum that provides a strong base in quantitative techniques and stochastic modeling. The main emphasis is on the application of these techniques and models in financial markets through computational methods and simulation. Due to the apparent diversity of the educational program, it has an interdisciplinary structure that involves the three main schools of the university.