Mathematics of Finance
Code
10985
Academic unit
Faculdade de Ciências e Tecnologia
Department
Departamento de Matemática
Credits
3.0
Teacher in charge
Gracinda Rita Diogo Guerreiro
Weekly hours
3
Total hours
52
Teaching language
Português
Objectives
Understand the principles of financial calculation and apply them in a wide range of financial transactions or investment funding (investment savings in time deposits, housing loans or consumption etc..).
Apply specific methods relating to financial annuities, loan repayments, investment and financial evaluation of investments.
Prerequisites
Students should have knowledge at the level of mathematical analysis (sequences in arithmetic progression and geometric sums, series, differentiation and integration) as well as on the use of Microsoft Excel.
Subject matter
1 - Basics
2 - Capitalization Regimes
3 - Equity Capitals
4 - Financial Annuities
5 - Reimbursement of Loans
6 - Bond Loans
7 - Calculus and Financial Applications Capital
8 - Risk Measures of Interest Rate
Bibliography
MATEUS, J. (2000) Cálculo financeiro; Edições Sílabo,
MATIAS, R. (2007) Cálculo financeiro : teoria e prática; Escolar Editora.
Jorion, Philippe (2006) Value at Risk, 3rd Ed.: The New Benchmark for Managing Financial Risk; McGraw-Hill
Teaching method
The teaching method used in this course can be summarized as follows:
-In the first part, the topics are introduced through an oral presentation, whose main objective is to motivate student interest in the study of this subject, at the same time it draws attention to the important aspects of the subject under study. The oral presentation is made traditionally on the board under the support of "slides".
-In the second part, exercises are proposed and corrected. Questions that have resulted from the study of students are taken into account.
In a third-strand, continuous evaluation is performed with a mini-test of 45 minutes to perform during the semester.
-The fourth part are the computer classes, which aim to prepare students for the practice of the Financial Calculus.
Evaluation method
VALUATION RULES
Obtaining Frequency
Attendance at the course is given to students who have completed the practical work included in the assessment elements .
Evaluation
Obtaining Attendance is compulsory for the completion of the assessment tests .
The assessment of the course in Financial Calculus consists of three evaluation elements :
- 1 Mini - Test , with a duration of 45 minutes , to be held in class during the semester .
- 1 Practical work conducted in groups throughout the semester.
- Test 1 , lasting 120 minutes, held at the end of the semester .
No shows an assessment translates into a rating of 0 values in this evaluation.
The Practical Work may be subject to oral discussion .
Approval in Regular Season
Considering MT , PT, T and NN grades obtained in the Mini - Test , Practical Work , Testing and Rating of Regular Season , respectively , it is considered that a student obtains approval for the course to check all of the following conditions :
- Rank Test : T > = 7.5 points .
- Regular Season Rating : NN = MT + 0.2 0.3 + 0.5 TP T > = 9.5.
Approval Period of Appeal
You can introduce yourself to exam resource throughout a student who has obtained the frequency course .
Note The Exam Appeal, ER , integrate Note Student Resource , which will be determined by NR ER = 0.7 + 0.3 TP .
Improvements and defense Grades
The student who wishes to make up the exam grade improvement must sign up for this purpose , the Academic Division . The improvement of grades may be issued in Appeal Season. To be grade improvement , requires that:
The grade obtained in this exam , IN , is not less than 9.5;
The Improvement Notice , obtained from EM OR = 0.7 + 0.3 TP is higher than the note NN , obtained in Regular Season .
If the student obtains a final grade higher than 17 , you can choose between staying with the classification of 17 values or perform a complementary test for the defense of note.