BPF_FIMA Financial Mathematics

Faculty of Economics and Administration
Autumn 2019
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Luděk Benada, Ph.D. (lecturer)
Ing. Luděk Benada, Ph.D. (seminar tutor)
Ing. Lukáš Marek (seminar tutor)
Ing. Mgr. Martin Stachoň, 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
Timetable
each even Monday 10:00–11:50 P102
  • Timetable of Seminar Groups:
BPF_FIMA/01: Thu 8:00–9:50 VT202, L. Benada, M. Stachoň
BPF_FIMA/02: Thu 14:00–15:50 VT206, L. Marek
BPF_FIMA/03: Thu 10:00–11:50 VT206, L. Benada, M. Stachoň
BPF_FIMA/04: Thu 16:00–17:50 VT206, L. Marek
BPF_FIMA/05: Mon 14:00–15:50 VT202, S. Zlatošová
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 94 student(s).
Current registration and enrolment status: enrolled: 1/94, only registered: 0/94, only registered with preference (fields directly associated with the programme): 0/94
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: 1-2. Organisational instructions, introduction to financial mathematics (calculation of ahead and after interest).
  • 3-4. Interest calculation with taxation and real interest.
  • 5-6. Aggregate repetition and preparation for the test.
  • 7-8. Calculation of annuity I, introduction to the problematic, future value.
  • 9-10. Calculation of annuity II, present value.
  • 11-12. Calculation of annuity III, Loans.
  • 13. Random Walk.
  • Thematic plan - seminars:
  • 1.Introductory seminar (seminar work, condition of assessment, repetition of secondary school mathematics).
  • 2. Interest payed after and ahead, linear and exponencial interest.
  • 3. Combined interest, taxation and inflation.
  • 4. Real interest in the process of discrete and continuous calculation.
  • 5. Completion of interest calculation and repetition for the test.
  • 6. Test I.
  • 7. Calculation of Anuity, introduction to the problematic and calculation of future value.
  • 8. Complex examples with focus on FV.
  • 9. Calculatin of anuities II, present value.
  • 10. Complex examples.
  • 11. Loans.
  • 12. Summary and repetition for 2nd test.
  • 13. Test II.
Literature
    required literature
  • Skripta FIMA
  • BUCHANAN, J. Robert. An undergraduate introduction to financial mathematics. 3rd ed. New Jersey: World Scientific, 2012, xviii, 464. ISBN 9789814407441. info
    recommended literature
  • ŠOBA, Oldřich and Martin ŠIRŮČEK. Finanční matematika v praxi. 2., aktualizované a rozší. Praha: Grada Publishing, 2017, 330 stran. ISBN 9788027102501. URL info
  • RADOVÁ, Jarmila, Petr DVOŘÁK and Jiří MÁLEK. Finanční matematika pro každého. 8., rozš. vyd. Praha: Grada, 2013, 304 s. ISBN 9788024748313. URL info
  • ČERVINEK, Petr and František ČÁMSKY. Finanční matematika - Distanční studijní opora. 2009, 91 pp. info
Teaching methods
lectures, during the seminars - solving of problems related to interest, savings, annuities and credits
Assessment methods
The course has a form of lectures and seminars (1/2 per week).
Exam: written
1. The in-term test I and in-term test II will be written in the seminars, in the weeks given by the time schedule (if a student is unable to take one of these in-term tests (no more than one test) – a lecturer will consider student apology and can enable the student to take a substitute test of the whole course at the beginning of the examination period. The evaluation of the substitute test will be the same as evaluation of the scheduled in-term tests.)
2. The final evaluation of results of work in the seminars (the prerequisite for taking part in the exam is both passing scheduled in-term tests and a minimum 70 % attendance in the seminars, the prerequisite for passing the test is 60 % success rate and more.)
3. The exam and final evaluation (the exam has two parts – running, which consists of the in-term test I, in-term test II and the final test).
Each test consists of three problems of different difficulty.

The final grade is comprised of:
Evaluation of In-term test I (25 %) + evaluation of In-term test II (25 %) + Final test (50 %)
Student knowledge will be assessed using the following grading scheme:
A= 92 – 100 %
B= 84 – 91 %
C= 76 – 83 %
D= 68 – 75 %
E= 60 – 67 %
F= less than 60 %

Important information! If student commits a prohibited act, such as usage of various forbidden tools, cribbing, taking out any part of the exam or any other cheating, teacher is allowed to interrupt an exam and to grade a student with F, FF or FFF according to the seriousness of the offence. Mentioned procedure relates to all the activities that are included to the final evaluation of the course (seminar work, essays, tests etc.).
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
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 2020, Autumn 2021, Autumn 2022, Autumn 2023, Autumn 2024.
  • Enrolment Statistics (Autumn 2019, recent)
  • Permalink: https://is.muni.cz/course/econ/autumn2019/BPF_FIMA