BPF_FIMA Financial Mathematics

Faculty of Economics and Administration
Autumn 2024
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: zk (examination).
Taught in person.
Teacher(s)
Mgr. Silvie Zlatošová, Ph.D. (lecturer)
Ing. Luděk Benada, Ph.D. (lecturer)
Ing. Luděk Benada, Ph.D. (seminar tutor)
Mgr. Silvie Zlatošová, Ph.D. (seminar tutor)
Guaranteed by
Ing. Luděk Benada, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Prerequisites
In the courese is applied mathematical apparatus of high school, mainly linear, quadratic, exponential and logarithmic equations, modification of expressions, geometric and arithmetic series.
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 108 student(s).
Current registration and enrolment status: enrolled: 0/108, only registered: 0/108, only registered with preference (fields directly associated with the programme): 0/108
fields of study / plans the course is directly associated with
Course objectives
After passing the course is student able to: make clear the fundamentals of financial mathematics, calculation of annuities and the principles of interest. Futher, he will able to make use of the interest in fundamental areas of financial mathematics and apply acquired knowledge to the related areas which are not discussed within this course.
Learning outcomes
Student will be able to:
- understand and apply the concept of time value of captal;
- make decisions on time-diverging cash flows;
- interpret an informative content of interest rate;
- apply variations of interest calculation: after-term and pre-term (linear, compound, exponetial, combined);
- understand the value of real and nominal capital depending on the form of taxation and price level;
- effectively work with the annuities on which the whole field of finance is based.
Syllabus
  • Thematic plan - lectures:
  • Organizational instructions
  • 25. 9. Simple Interest
  • 2. 10. Simple Interest
  • 9. 10. Discounting
  • 16. 10. Discounting
  • 23. 10. Compound Interest
  • 30. 10. Compound Interest
  • 6. 11. Reading week
  • 13. 11. Anuities I
  • 20. 11. Anuities II
  • 27. 11. Anuities II
  • 4. 12. Anuities II
  • 11. 12. Introduciton to the Stochastics Modeling
  • 18. 12. Introduciton to the Stochastics Modeling
  • Thematic plan - seminars:
  • 1. Review of basic math skills
  • 2. Simple Interest
  • 3. Simple Interest & Discounting
  • 4. Discounting
  • 5. Compound Interst
  • 6. 1st Test
  • 7. Reading week
  • 8. Compoud Interest
  • 9. Anuities I
  • 10. Anuities II
  • 11. Anuities III
  • 1. 12. Anuities Review of basic math skills & Stochastic Calculus
  • 13. 2nd Test
Literature
    required literature
  • BUCHANAN, J. Robert. An undergraduate introduction to financial mathematics. 3rd ed. New Jersey: World Scientific, 2012, xviii, 464. ISBN 9789814407441. info
    recommended literature
  • O'REGAN, Gerard. A Guide to Business Mathematics. CRC Press, 2022.
  • Skripta FIMA
    not specified
  • Mathematics of Interest Rates and Finance. Pearson Education Limited, 2014. ISBN 1-292-03983-3. info
Teaching methods
Lectures combined with student interaction, Seminars - solving of problems related to interest, savings, annuities, credits and some securities.
Assessment methods
Structure of the course: 1/2 (lecture / seminar)
Assessment:
The valuation will be based on written exam. The regular valuation takes place in the form of 2 control tests. The maximum score of each test is 15 points, i.e. 30 points in total. The tests will be held in 7th week and 14th week of the semester.

For ongoing activity in exercises and lectures, the student can receive an additional 5 points. The graded activity will always be specified by the teacher.

To successfully complete the course, it is necessary to obtain at least 18 points.
A student who does not get at least 18 points is graded "F".
The student who does not get the required number of points can use the correction dates that will take place during the exam period.

The score of the remedial test will have the score of 30 points, and in order to successfully complete the course, it is required at least 18 points (including the activities during the semester).

The correction deadline can also be used by those who have been properly excused in the IS for their non-participation in one of the control tests. For them, this written test will only replace the points from the missed test.

Students who are on an internship abroad during the semester and cannot attend classes, contact the course guarantor in the first week of the semester and agree on individual conditions for completing the course.

Classification scale:
A: [27,35]
B: [25,27)
C: [23,25)
D: [21,23)
E: [18,21)
F: [0,18)

If a student commits an illegal conduct such as the use of various illegal aids ("cheat sheet"), copying, taking test assignments and conduct that interferes with the course of the test, the teacher interrupts the examination and assigns classification to IS F or FF, depending on the severity of the offense. possibly also FFF. In the case of a serious misdemeanour, the disciplinary commission will be initiated to initiate disciplinary proceedings.
Language of instruction
Czech
Further comments (probably available only in Czech)
The course is taught annually.
The course is taught: every week.
Credit evaluation note: k=1,33.
The course is also listed under the following terms Autumn 2009, Autumn 2010, Autumn 2011, Autumn 2012, Autumn 2013, Autumn 2014, Autumn 2015, Autumn 2016, Autumn 2017, Autumn 2018, Autumn 2019, Autumn 2020, Autumn 2021, Autumn 2022, Autumn 2023.
  • Enrolment Statistics (Autumn 2024, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2024/BPF_FIMA