Mathematics of Finance
Code
10985
Academic unit
Faculdade de Ciências e Tecnologia
Department
Departamento de Matemática
Credits
3.0
Teacher in charge
Maria de Lourdes Belchior Afonso
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 rate in the first Test (T1) with grade superior to 7,5.
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 (MT), with a duration of 90 minutes , to be held in class during the semester .
- two tests, T1 and T2 , lasting 90 minutes, held during the semester.
No shows an assessment translates into a rating of 0 values in this evaluation.
Approval in Regular Season
Considering MT , T1, T2 and NN grades obtained in the Mini - Test , Test 1, Test 2 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 1 : T1 > = 7.5 points .
- Regular Season Rating : NN = 0,3MT + 0.3T1 + 0.4 T2 > = 9.5.
Approval Period of Appeal
You can do the exam Appeal if you have obtained the Attendance .
The rate of the Exam Appeal, ER is the final rate of the student.
Improvements and defense Grades
The student who wishes to make up the exam grade improvement must sign up for this purpose in 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 , is higher than the previous rate.
If the student obtains a final grade higher than 18 , you can choose between staying with the classification of 18 values or perform a complementary test for the defense of note.