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Lecturer(s)
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Pavlačka Ondřej, RNDr. Ph.D.
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Course content
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1. Introduction to Financial Mathematics: Simple and compound interest and its application, present and future value, rate of return, price of bill, interest rates. 2. Cash flow systems, evaluation of investments: a) Net present value, internal rate of return, payback period. b) Annuities and perpetuities. c) Debt amortization methods. 3. Bonds: bond price, term structure of interest rates, duration of a bond. 4. Stocks. 5. Exchange rate, forward contracts. 6. Futures, forward, swap contracts, options. 7. Introduction to portfolio theory: Markowitz model, Sharpe model, CAPM.
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Learning activities and teaching methods
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Lecture, Demonstration, Projection (static, dynamic)
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Learning outcomes
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The aim of the course is to gain knowledge of selected parts of basic and advanced mathematics of finance.
Understanding, application To be able to use theoretical methods in solving practical problems of saving, investments, credits, securities, exchange rate, event. other bank products.
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Prerequisites
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Basic calculus.
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Assessment methods and criteria
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Oral exam, Written exam
Credit: complete the assigned tasks. Exam: to understand all the particular parts of the object, to be able to derive the corresponding formulae and relations.
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Recommended literature
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Bohanesová, E. (2013). Finanční matematika. VUP, Olomouc.
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Cipra, T. (2000). Matematika cenných papírů. HZ, Praha.
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Cipra, T. (2015). Praktický průvodce finanční a pojistnou matematikou. 2. vyd.. Ekopress, Praha.
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Evstigneev, I. a kol. (2005). Mathematical Financial Economics. A basic introduction. Springer.
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Radová, J., Dvořák, P. (2013). Finanční matematika pro každého. Grada, Praha.
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