151-0518/03 – Financial Mathematics (FM)

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits4
Subject guarantorMgr. Taťána Funioková, Ph.D.Subject version guarantorMgr. Taťána Funioková, Ph.D.
Study levelundergraduate or graduateRequirementChoice-compulsory type B
Year3Semesterwinter
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
FUN01 Mgr. Taťána Funioková, Ph.D.
Extent of instruction for forms of study
Form of studyWay 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
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:

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

Comprehensive final test and homework assignments.

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

Full-time form (validity from: 2018/2019 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit Credit  
        Final test Written test  
        Homework assignments Semestral project  
Mandatory attendence parzicipation: Attendance at lectures is recommended, for seminars at least 80% is required.

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (B0412A050006) Finance P English Ostrava 3 Choice-compulsory type B study plan
2019/2020 (B0412A050006) Finance P English Ostrava 3 Choice-compulsory type B study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner