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).
In-person direct teaching
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
Timetable
Mon 10:00–10:50 P102, except Mon 16. 9., except Mon 4. 11.
  • Timetable of Seminar Groups:
BPF_FIMA/01: Thu 8:00–9:50 VT202, except Thu 19. 9., except Thu 7. 11., L. Benada
BPF_FIMA/02: Thu 10:00–11:50 P403, except Thu 19. 9., except Thu 7. 11., L. Benada
BPF_FIMA/03: Tue 8:00–9:50 VT105, except Tue 17. 9., except Tue 5. 11., S. Zlatošová
BPF_FIMA/04: Mon 12:00–13:50 VT314, except Mon 16. 9., except Mon 4. 11., S. Zlatošová
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: 112/108, only registered: 2/108, only registered with preference (fields directly associated with the programme): 1/108
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
  • 23. 9. Simple Interest
  • 30. 9. Simple Interest
  • 7. 10. Discounting
  • 14. 10. Discounting
  • 21. 10. Compound Interest
  • 28. 10. Holiday
  • 4. 11. Reading week
  • 11. 11. Compound Interest
  • 18. 11. Anuities I
  • 25. 11. Anuities II
  • 2. 12. Anuities III
  • 9. 12. Anuities IV
  • 16. 12. Introduction to the Stochastics Modeling
  • Thematic plan - seminars:
  • 1. Review of basic math skills
  • 2. Simple Interest
  • 3. Simple Interest & Discounting
  • 4. Discounting
  • 5. Compound Interest
  • 6. Compound Interest
  • 7. Reading week
  • 8. Test
  • 9. Annuities I
  • 10. Annuities II
  • 11. Annuities III
  • 12. Annuities Review of basic math skills & Stochastic Calculus
  • 13. Substitute test
Literature
    required literature
  • Mathematics of Interest Rates and Finance. Pearson Education Limited, 2014. ISBN 1-292-03983-3. info
  • BUCHANAN, J. Robert. An undergraduate introduction to financial mathematics. 4th ed. ‎WSPC, 2022, 466. ISBN 9789811260308.
    recommended literature
  • O'REGAN, Gerard. A Guide to Business Mathematics. CRC Press, 2022.
  • ZWEIG, D. A Technical Guide to Mathematical Finance. 1st ed., Chapman & Hall , 2024, 198. ISBN 9781032687230.
  • Skripta FIMA
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:
During the semester, an intermediate test for 15 points will be written. This test will take place in the 9th week of the semester. For ongoing activity in seminars and lectures, the student can receive an additional 5 points. The valuation of the activity will always be specified by the teacher.
For the participation in the final exam student must receive in total at least 8 points during the semester.
If student is excused in IS for not participating in the intermediate test, he/she can take the substitute test in the 14th week of the semester. In the 14th week of the semester, there will also be a corrective test for students who fail to achieve at least 8 points.
A necessary condition for being allowed to take the exam is a maximum of 3 unexcused absences from seminars.

The final exam is written. To successfully complete the course, the student must achieve a total of 18 points from the entire semester. The regular term will include subjects that have not yet been on the midterm test. This test will be evaluated with a maximum of 15 points. Points from the interim test from the semester, bonus points and the final exam test are then included in the overall assessment. In case of failure, the student is entitled to a rescheduled exam date. The curriculum for the whole semester will already be tested here. The correction test will be worth a total of 30 points. The total score will be based on the scrore of the final exam and points earned during the semester.

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)
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 2019, Autumn 2020, Autumn 2021, Autumn 2022, Autumn 2023.
  • Enrolment Statistics (recent)
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