Course detail
Financial and Insurance Mathematics
FP-FPMAcad. year: 2022/2023
This course is a cross-section of modern methods and principals of financial and selected insurance calculations as they are applied in financial and insurance practice: types of interest rates, savings, income, systems of financial flows, investment rules, shares, bonds, debt amortization, financial risk, financial portfolio management, basic insurance principles.
Language of instruction
Czech
Number of ECTS credits
4
Mode of study
Not applicable.
Guarantor
Department
Learning outcomes of the course unit
After completing the course, students will be able to understand the principles and function of the financial decision-making and to use acquired knowledge and skills for modeling of financial and insurance phenomena and solving of basic problems in these areas by means of engineering mathematics. The subject isaimed at supporting financial literacy.
Prerequisites
Basic courses university mathematics: percentages, adjustment of expressions, solving equations, inequations, and their systems, functions (basic terms, properties and graphs of elementary functions), sequences and series (especially arithmetic and geometric), averages. The basic use of mathematical software for computations, visualizations, simulations and modeling of financial phenomena. Orientation in selected categories in the economic environment.
Co-requisites
Not applicable.
Planned learning activities and teaching methods
The course contains
- lectures that explain basic principles, problems and methodology of this discipline. There are solved typical examples and tasks;
- exercises focus on solving practical problems.
- lectures that explain basic principles, problems and methodology of this discipline. There are solved typical examples and tasks;
- exercises focus on solving practical problems.
Assesment methods and criteria linked to learning outcomes
To obtain the course-unit credit (classified credit) it is required: processing assigned tasks, semester project and successful completion of a credit test (evaluation A to E), as the case may be added to which with a short oral part.
The course-unit credit (classified credit) demonstrates knowledge of taught topics and its practical application. Classification methods depend on the BUT Rules for Studies and Examinations using the ECTS grading scale.
The course-unit credit (classified credit) demonstrates knowledge of taught topics and its practical application. Classification methods depend on the BUT Rules for Studies and Examinations using the ECTS grading scale.
Course curriculum
Fundamentals of mathematical methods aimed to discipline - brief summary
Interest
Savings
Time value of money; Investment decision-making
Pensions
Loans; Installment plan
Bond
Shares
Portfolio theory
Future contracts; Speculation in securities; Currency rates
Insurance
Applications, practice
Interest
Savings
Time value of money; Investment decision-making
Pensions
Loans; Installment plan
Bond
Shares
Portfolio theory
Future contracts; Speculation in securities; Currency rates
Insurance
Applications, practice
Work placements
Not applicable.
Aims
The aim of the course is to acquaint students with the basic concepts and relations in the field of modern finance in the application of mathematical methods, applications in the real examples and other practical knowledge.
Specification of controlled education, way of implementation and compensation for absences
Attendance at lectures is not compulsory, but is recommended.
Attendance at exercises is compulsory and regularly monitored. Student must to excuse his absence. The independent processing of assigned tasks in excercises are checked. In the case of non-fulfilment given conditions in excercises the teacher can set additional condition.
Attendance at exercises is compulsory and regularly monitored. Student must to excuse his absence. The independent processing of assigned tasks in excercises are checked. In the case of non-fulfilment given conditions in excercises the teacher can set additional condition.
Recommended optional programme components
Not applicable.
Prerequisites and corequisites
Not applicable.
Basic literature
CIPRA, T.: Praktický průvodce finanční a pojistnou matematikou. Vyd. III. Praha: Ekopress. 308 s. 2015. ISBN: 978-80-87865-18-7.
KARATSAZ., I. and SHREVE, S.E. Methods of Mathematical Finance. 2. vydání. Springer. 1999. ISBN-13: 978-0387948393.
RADOVÁ, J., DVOŘÁK, P. and MÁLEK, J.. Finanční matematika pro každého. 8. rozšířené vydání. Praha: Grada Publishing, a.s. 304 s. 2013. ISBN:078-80-247-4831-3.
KARATSAZ., I. and SHREVE, S.E. Methods of Mathematical Finance. 2. vydání. Springer. 1999. ISBN-13: 978-0387948393.
RADOVÁ, J., DVOŘÁK, P. and MÁLEK, J.. Finanční matematika pro každého. 8. rozšířené vydání. Praha: Grada Publishing, a.s. 304 s. 2013. ISBN:078-80-247-4831-3.
Recommended reading
Bohanesová, E. 2006. Finanční matematika 1. Vyd. 1. Univerzita Palackého v Olomouci Přírodovědecká fakulta, 118 s. ISBN 80-244-1294-2.
HAEUSSLER, E. F., PAUL, R. S. and WOOD, R. J. Introductory mathematical analysis for business, economics, and the life and social sciences. 12th ed. Upper Saddle River: Pearson Prentice Hall. 2008. ISBN 978-0-13-242435-6.
RADOVÁ, J. a kol. Finanční matematika pro každého, příklady + CD-ROM. 2. přepracované vydání.Praha: Grada publishing, a.s. 256 s. 2011. ISBN978-80-247-3584-9.
HAEUSSLER, E. F., PAUL, R. S. and WOOD, R. J. Introductory mathematical analysis for business, economics, and the life and social sciences. 12th ed. Upper Saddle River: Pearson Prentice Hall. 2008. ISBN 978-0-13-242435-6.
RADOVÁ, J. a kol. Finanční matematika pro každého, příklady + CD-ROM. 2. přepracované vydání.Praha: Grada publishing, a.s. 256 s. 2011. ISBN978-80-247-3584-9.
Classification of course in study plans
Type of course unit
Lecture
26 hod., optionally
Teacher / Lecturer
Syllabus
The lecture has a more theoretical and methodological character to understand the causality of the phenomena of the discipline, it presents some typical examples from areas:
Fundamentals of mathematical methods aimed to discipline - brief summary; Interest; Savings; Time value of money; Investment decision-making; Pensions; Loans; Installment plan; Bond; Shares; Portfolio theory; Future contracts; Speculation in securities; Currency rates; Insurance; Applications, practice.
Fundamentals of mathematical methods aimed to discipline - brief summary; Interest; Savings; Time value of money; Investment decision-making; Pensions; Loans; Installment plan; Bond; Shares; Portfolio theory; Future contracts; Speculation in securities; Currency rates; Insurance; Applications, practice.
Exercise
13 hod., compulsory
Teacher / Lecturer
Syllabus
Exercises reflect the topics discussed at the lecture.
Fundamentals of mathematical methods aimed to discipline - brief summary; Interest; Savings; Time value of money; Investment decision-making; Pensions; Loans; Installment plan; Bond; Shares; Portfolio theory; Future contracts; Speculation in securities; Currency rates; Insurance; Applications, practice.
Fundamentals of mathematical methods aimed to discipline - brief summary; Interest; Savings; Time value of money; Investment decision-making; Pensions; Loans; Installment plan; Bond; Shares; Portfolio theory; Future contracts; Speculation in securities; Currency rates; Insurance; Applications, practice.