151-0318/04 – Mathematics of Finance (FM318)

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits4
Subject guarantorMgr. Taťána Funioková, Ph.D.Subject version guarantordoc. Dr.Ing. Lubomír Hrbáč
Study levelundergraduate or graduate
Study languageCzech
Year of introduction2009/2010Year of cancellation2010/2011
Intended for the facultiesEKFIntended for study typesFollow-up Master, Master, Bachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
HRB07 doc. Dr.Ing. Lubomír Hrbáč
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

Procvičování pratických příkladů a řešení případových studií v rámci cvičení v počítačových učebnách v programovém systému MS Excel a jeho bloku "Finanční funkce"

E-learning

Přednášky i cvičení jsou vedeny za podpory bLearningového prostředí Moodle. Kromě toho je studentům předkládaná nabídka učebních textů prostřednictvím IIS EkF (interního informačního systému) a jeho bloku "Studijní materiály" pro předmět (kurz) 151318 Finanční matematika

Další požadavky na studenta

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Jednoduché úrokování 2. Některé krátkodobé cenné papíry 3. Složené úrokování 4. Časová hodnota peněz a investiční rozhodování 5. Spoření 6. Kombinace krátkodobého a dlouhodobého spoření 7. Důchod 8. Umořování dluhu 9. Modely důchodů a půjček 10. Analýza cenných papírů (obligace, akcie) 11. Finanční riziko a jeho měření 12. Snižování rizika diverzifikací 13. Riziko a výnos

Conditions for subject completion

Full-time form (validity from: 2009/2010 Winter 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  23
        Examination Examination 55  28
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2010/2011 (B6208) Economics and Management (6208R062) Marketing and Business (01) Marketing and Business P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6208) Economics and Management (6208R101) Sports Management (01) Sports Management P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6202) Economic Policy and Administration (6202R010) Finance (00) Finance P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6207) Quantitative Methods in Economics (6207R015) Managerial and Decision Making Methods in Economics P Czech Ostrava 3 Compulsory study plan
2010/2011 (B6208) Economics and Management (6208R101) Sports Management (02) Sports Management P Czech Uherské Hradiště 3 Choice-compulsory study plan
2010/2011 (B6234) Quantitative Methods and Decision Making in Economics (6207R015) Managerial and Decision Making Methods in Economics P Czech Ostrava 3 Compulsory study plan
2009/2010 (B6208) Economics and Management (6208R101) Sports Management (01) Sports Management P Czech Ostrava 3 Choice-compulsory study plan
2009/2010 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Choice-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

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner