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Lecturer(s)
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Chládek Petr, Mgr. Ph.D.
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Berková Ilona, Ing. Ph.D.
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Šulista Marek, PhDr. Ph.D.
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Fiala Jan, RNDr. et PhDr. Ph.D.
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Course content
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(1) Basic terminology, percentages, means, progressions. (2) Simple interest and bank discount, standards of interest calculations. (3) Compound and continuous interest. (4) Inflation, real and effective interest rate. (5) Time value of money, system of cash flows. (6) Annuities - saving redemption. (7) Annuities - loan redemption. (8) Complex savings models. (9) Depreciation of assets. (10) Modelling of basic bank products in Excel. (11) Portfolio, performance measuring. (12) Volatility measuring. (13) Random interest.
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Learning activities and teaching methods
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Monologic (reading, lecture, briefing)
- Preparation for credit
- 42 hours per semester
- Preparation for classes
- 28 hours per semester
- Class attendance
- 42 hours per semester
- Preparation for exam
- 56 hours per semester
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Learning outcomes
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The course introduces to the basic terminology, principles and calculating operations of financial mathematics and their applications in concrete problems. The course covers the key topics such as time value of money, simple and compound interest, regular payments - annuities and loan redemption, and yield and risk measurements of portfolio. Moreover, another aim of the course is to introduce to the use of MS Excel in modelling building society savings, amortisation mortgage schedules, calculation of APR etc.
Students understand the basic principles of financial mathematics, they are able to compare various financial products and to use effectively the relevant software in their financial computation.
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Prerequisites
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The course has no prerequisities.
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Assessment methods and criteria
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Combined exam
Credit Requirements: - completion of all revision tests (homework) in Moodle. Students who fail the deadlines will not be allowed to take the credit tests during the semester, they will have to complete the tests by the end of the teaching part of the summer semester and will be allowed to take only a summary test. - to score at least 4 points in each of 2 credit tests, each test is worth a maximum of 7 points, or to score at least 7 points in a summarizing test worth a maximum of 12 points. Students may take each of the tests once only. Students can use a formula sheet provided by the teacher and a calculator. Examination Requirements: Calculation of two financial problems using MS Excel. The students may score 12 points at maximum. To pass the exam, students have to score at least 7 points. No aids are allowed in the exam. The final mark is based on the results of the credit tests and the final examination.
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Recommended literature
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http://www2.ef.jcu.cz/~sulista/pages/index.php?pagename=fpmat.
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Cipra, T. Praktický průvodce finanční a pojistnou matematikou. Praha: Ekopress,s.r.o., 2005..
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RADOVÁ, J. - DVOŘÁK, P. Finanční matematika pro každého. Praha: Grada Publishing, 2001.
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Šulista, M., Nýdl, V., Moore, G. A. Introduction to Financial and Actuarial Mathematics. EF JU České Budějovice, 157 s., 2008. ISBN 978-80-7394-127-7.
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Zima, P., Brown, L. R. Schaum's Outline of Theory and Problems of Mathematics of Finance. McGraw-Hill Companies, Inc., New York, 2. ed., 1996. ISBN 0-07-008203-0.
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