Mathematics of Finance

Objectives

Understand the principles of Financial Mathematics 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.

General characterization

10985

3.0

Responsible teacher

Maria de Lourdes Belchior Afonso

Weekly - 3

Total - 52

Português

Available soon

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

1.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".

2. exercises are proposed and corrected in class.

3. computer classes, which aim to prepare students for the practice of the Financial Mathematics.

Evaluation method

Obtaining Frequency

Attendance at the course is given to students who attended, at least, half of the classes.

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 :

- two tests, T1 and T2 , lasting 90 minutes, held during the semester.

The absence on an assessment translates into a rating of 0 values in this evaluation.

Approval in Regular Season

Considering T1, T2 the grades obtained in Tests 1 and 2 and NN the Rating of Regular Season, it is considered that a student obtains approval for the course if  NN = 0.5T1 + 0.5 T2 > = 9.5.

Approval Period of Appeal

You can do the exam Appeal if you have obtained the Attendance. The obtained rate is the final rate of the student.

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 grade, 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.

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

Programs

Programs where the course is taught: