151-0318/02 – Mathematics of Finance (FM318)

Gurantor department	Department of Mathematical Methods in Economics	Credits	4
Subject guarantor	Mgr. Taťána Funioková, Ph.D.	Subject version guarantor	RNDr. Danuše Bauerová, Ph.D.
Study level	undergraduate or graduate	Requirement	Choice-compulsory
Year	3	Semester	winter
		Study language	Czech
Year of introduction	2004/2005	Year of cancellation	2009/2010
Intended for the faculties	EKF	Intended for study types	Bachelor

Instruction secured by
Login	Name	Tuitor	Teacher giving lectures
BAU20	RNDr. Danuše Bauerová, Ph.D.
HRB07	doc. Dr.Ing. Lubomír Hrbáč
HRD0001	Mgr. Zdeněk Hrdina
HRU61	RNDr. Jana Hrubá, Ph.D.

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

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.

Way of continuous check of knowledge in the course of semester

E-learning

Other requirements

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

Obsah přednášek: 1. Jednoduché úrokování • Jednoduchý úrok • Bankovní diskont 2. Některé krátkodobé cenné papíry 3. Složené úrokování • Složený úrok a současná hodnota • Spojité úročení • Inflace a její vztah k úrokovým sazbám a cenám cenných papírů, reálná úroková míra 4. Časová hodnota peněz a investiční rozhodování • Hodnotová rovnice • Výnosnost 5. Spoření • Spoření krátkodobé • Spoření dlouhodobé 6. Kombinace krátkodobého a dlouhodobého spoření 7. Důchod • Současná a koncová hodnota důchodu 8. Umořování dluhu • Úmor dluhu nestejnými splátkami • Úmor dluhu stejnými splátkami • Určení počtu anuit 9. Modely důchodů a půjček 10. Analýza cenných papírů • Obligace • Akcie • Termínové obchody 11. Úvod do rizika • Měření rizika portfolia 12. Snižování rizika diverzifikací • Ovlivňování rizika portfolia jednotlivými cennými papíry • Diverzifikace a aditivita hodnot 13. Riziko a výnos • Vztah mezi rizikem a výnosem 14. Prezentace prací studentů v týmech

Conditions for subject completion

Full-time form (validity from: 1960/1961 Summer semester, validity until: 2008/2009 Summer semester)

Task name	Type of task	Max. number of points (act. for subtasks)	Min. number of points	Max. počet pokusů
Exercises evaluation and Examination	Credit and Examination	100 (100)	51	3
Exercises evaluation	Credit	45	0	3
Examination	Examination	55 (55)	0	3
Written examination	Written examination	55	0	3

Mandatory attendence participation:

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Conditions for subject completion and attendance at the exercises within ISP:

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Occurrence in study plans

Academic year	Programme	Branch/spec.	Spec.	Form	Study language	Tut. centre	Year	Type of duty
2009/2010	(B6208) Economics and Management	(6208R101) Sports Management	(01) Sports Management	P	Czech	Ostrava	3	Choice-compulsory	study plan
2009/2010	(B6208) Economics and Management	(6208R101) Sports Management	(02) Sports Management	P	Czech	Uherské Hradiště	3	Choice-compulsory	study plan
2009/2010	(B6207) Quantitative Methods in Economics	(6207R015) Managerial and Decision Making Methods in Economics		P	Czech	Ostrava	3	Compulsory	study plan
2009/2010	(B6202) Economic Policy and Administration	(6202R010) Finance	(00) Finance	P	Czech	Ostrava	3	Choice-compulsory	study plan
2009/2010	(B6208) Economics and Management	(6208R062) Marketing and Business	(01) Marketing and Business	P	Czech	Ostrava	3	Choice-compulsory	study plan
2008/2009	(B6207) Quantitative Methods in Economics	(6207R015) Managerial and Decision Making Methods in Economics		P	Czech	Ostrava	3	Compulsory	study plan
2008/2009	(B6202) Economic Policy and Administration	(6202R010) Finance	(00) Finance	P	Czech	Ostrava	3	Choice-compulsory	study plan
2008/2009	(B6208) Economics and Management	(6208R062) Marketing and Business	(01) Marketing and Business	P	Czech	Ostrava	3	Choice-compulsory	study plan
2008/2009	(B6208) Economics and Management	(6208R101) Sports Management	(01) Sports Management	P	Czech	Ostrava	3	Choice-compulsory	study plan
2008/2009	(B6208) Economics and Management	(6208R101) Sports Management	(02) Sports Management	P	Czech	Uherské Hradiště	3	Choice-compulsory	study plan
2007/2008	(B6207) Quantitative Methods in Economics	(6207R015) Managerial and Decision Making Methods in Economics		P	Czech	Ostrava	3	Compulsory	study plan
2007/2008	(B6202) Economic Policy and Administration	(6202R010) Finance	(00) Finance	P	Czech	Ostrava	3	Choice-compulsory	study plan
2007/2008	(B6208) Economics and Management	(6208R062) Marketing and Business	(01) Marketing and Business	P	Czech	Ostrava	3	Choice-compulsory	study plan
2007/2008	(B6208) Economics and Management	(6208R101) Sports Management	(01) Sports Management	P	Czech	Ostrava	3	Choice-compulsory	study plan
2006/2007	(B6202) Economic Policy and Administration	(6202R010) Finance	(00) Finance	P	Czech	Ostrava	3	Compulsory	study plan
2006/2007	(B6207) Quantitative Methods in Economics	(6207R015) Managerial and Decision Making Methods in Economics		P	Czech	Ostrava	3	Compulsory	study plan
2006/2007	(B6208) Economics and Management	(6208R101) Sports Management	(01) Sports Management	P	Czech	Ostrava	3	Choice-compulsory	study plan
2006/2007	(N6202) Economic Policy and Administration	(6202T049) Accounting and Taxes		P	Czech	Ostrava	1	Choice-compulsory	study plan
2006/2007	(B6208) Economics and Management	(6208R062) Marketing and Business	(01) Marketing and Business	P	Czech	Ostrava	3	Choice-compulsory	study plan

Occurrence in special blocks

Block name	Academic year	Form of study	Study language	Year	W	S	Type of block	Block owner

Assessment of instruction

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