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

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits4
Subject guarantorMgr. Taťána Funioková, Ph.D.Subject version guarantorRNDr. Danuše Bauerová, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year3Semesterwinter
Study languageCzech
Year of introduction2004/2005Year of cancellation2009/2010
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher 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 studyWay 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. Series of Economics Textbooks, Faculty of Economics, VŠB-TU Ostrava, 2017, vol. 28. 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.

Recommended literature:

BENNINGA, Simon a Benjamin CZACZKES. Financial modeling. 3rd ed. Cambridge: MIT Press, c2008. ISBN 978-0-262-02628-4. 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.

Way of continuous check of knowledge in the course of semester

E-learning

Další požadavky na studenta

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 nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Exercises evaluation and Examination Credit and Examination 100 (100) 51
        Exercises evaluation Credit 45  0
        Examination Examination 55 (55) 0
                Written examination Written examination 55  0
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType 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 nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner