151-0518/01 – Financial Mathematics (FM)
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 | Requirement | Compulsory |
Year | 3 | Semester | summer |
| | Study language | English |
Year of introduction | 2007/2008 | Year of cancellation | 2020/2021 |
Intended for the faculties | EKF | Intended for study types | Bachelor |
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
Individual consultations
Tutorials
Project work
Other activities
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:
Recommended literature:
Way of continuous check of knowledge in the course of semester
Written exam.
E-learning
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
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction