151-0318/06 – Mathematics of Finance (FM318)

Gurantor department	Department of Mathematical Methods in Economics	Credits	4
Subject guarantor	Mgr. Taťána Funioková, Ph.D.	Subject version guarantor	Mgr. Taťána Funioková, Ph.D.
Study level	undergraduate or graduate
		Study language	Czech
Year of introduction	2011/2012	Year of cancellation	2022/2023
Intended for the faculties	EKF	Intended for study types	Bachelor

Instruction secured by
Login	Name	Tuitor	Teacher giving lectures
FUN01	Mgr. Taťána Funioková, Ph.D.
RUC05	RNDr. Pavel Rucki, Ph.D.

Extent of instruction for forms of study
Form of study	Way of compl.	Extent
Full-time	Credit	1+2

Subject aims expressed by acquired skills and competences

The main objective of the course is to help students understand the current concepts of finance, by solving specific problems. After completing this course the student will be able to classify and develop its current knowledge of valuation not only of various securities and get acquainted with issues of bond portfolio immunization, practical portfolios risk measurement and diversification. We focus on application of basic financial decision-making procedures based on the concept of time value of money with use of the MS Excel spreadsheet, including its Solver Add-in.

Teaching methods

Lectures
Tutorials

Summary

The aim is to acquaint the students with the fundamentals of saving and investing that are of long-life practical use. These include savings accounts, annuities, loans, certificates of deposit, and buying and selling bonds or stocks including a bond portfolio target date immunization and an introduction to stock portfolio optimization. For all the problems a mathematical background, as well as an implementation using Microsoft Excel is introduced.

Compulsory literature:

FUNIOKOVÁ, Taťána. Introduction to financial mathematics. Ostrava: VŠB-TU Ostrava, 2017. ISBN 978-80-248-4081-9. LOVELOCK, David, Marilou MENDEL a A. Larry WRIGHT. An introduction to the mathematics of money: saving and investing. New York: Springer, c2010. ISBN 978-1-4419-2232-8. BENNINGA, Simon a Benjamin CZACZKES. Financial modeling. 3rd ed. Cambridge: MIT Press, c2008. ISBN 978-0-262-02628-4.

Recommended literature:

BREALEY, Richard A., Stewart C. MYERS a Franklin ALLEN. Principles of corporate finance. 11th global ed. Maidenhead: McGraw-Hill Education, c2014. McGraw-Hill series in finance, insurance, and real estate. ISBN 978-0-07-715156-0. BENNINGA, Simon; MOFKADI, Tal. Principles of finance with excel. New York, NY: Oxford University Press, 2006. ISBN 978-0190296384. DAY, Alastair. Mastering Financial Mathematics in Microsoft Excel 2013: A Practical Guide To Business Calculations. Pearson UK, 2015. ISBN 9780273730330.

Additional study materials

Study supports in the EduDocs system

Way of continuous check of knowledge in the course of semester

Vypracování korespondenčních úkolů v elektronické podobě a závěrečný test.

E-learning

Není.

Other requirements

No additional activities required.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

Subject’s Syllabus: • Simple interest, some of the short-term securities • Compound interest • The time value of money and investment decision-making • Money saving • Income • Debt redemption • Models of income and loans • Introduction to securities analysis • Introduction to (financial) risk

Conditions for subject completion

Conditions for completion are defined only for particular subject version and form of study

Occurrence in study plans

Academic year	Programme	Branch/spec.	Form	Study language	Tut. centre	Year	Type of duty
2020/2021	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2019/2020	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2018/2019	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2017/2018	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2016/2017	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2015/2016	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2015/2016	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Uherské Hradiště	2	Compulsory	study plan
2014/2015	(B6209) Systems Engineering and Informatics	(6209R017) Informatics in Economics	P	Czech	Ostrava	2	Compulsory	study plan
2013/2014	(B6209) Systems Engineering and Informatics	(6209R025) System Engineering and Informatics	P	Czech	Ostrava	2	Compulsory	study plan

Occurrence in special blocks

Block name	Academic year	Form of study	Study language	Year	W	S	Type of block	Block owner
Subject block without study plan - EKF - P	2014/2015	Full-time	Czech				Optional	EKF - Faculty of Economics	stu. block

Assessment of instruction