Financial Calculus
Objectives
At the end of this course the student will have acquired the knowledge, skills and competences that will allow them to:
Learn introductory concepts related to Mathematics of Finance;
Understand the concepts of time value of money, interest rates and interest rate;
Calculate Current Value and Value Accumulated capital in different moments in time;
Understand the concept of Financial Annuities and apply it in various scenarios;
Build and analyse Classic Loans and Bond Loans;
Analysis of the viability of an investment by the NPV and IRR;
Identify some Risk Measures of Interest Rate.
This course will also provide the foundations to develop expertise in the areas of Actuarial Studies and Finance.
General characterization
Code
12230
Credits
6.0
Responsible teacher
Gracinda Rita Diogo Guerreiro
Hours
Weekly - 4
Total - 60
Teaching language
Português
Prerequisites
Students should have knowledge at the level of mathematical analysis (sequences in arithmetic progression and geometric sums, series.
Bibliography
McCutcheon, J. and Scott, W.. An Introduction to the Mathematics of Finance. The Institute of Actuaries and the Faculty of Actuaries, 1998.
Broverman, S.A.. Mathematics of Investment and Credit, 7thEdition, ACTEXAcademic Series, 2017.
Barroso, M.N., Couto, E. e Crespo, N.. Cálculo e Instrumentos Financeiros: da prática para a teoria, Escolar Editora 2009.
Nicolau I. e Rodrigues J.A.. Elementos de Cálculo Financeiro, 9ª Edição, Áreas Editora, 2010.
Matias, R.. Cálculo financeiro: teoria e prática, 6ª Edição, Escolar Editora, 2018.
Teaching method
In the theoretical-practical classes, the successive topics of the course programme will be explained and discussed.
The topics are introduced by the lecturer, consolidated using real examples from financial activity, followed by a brief discussion.
Teaching includes real cases solved in a computerised environment.
Assessment is carried out using tests, a practical assignment and/or an exam.
Evaluation method
Evaluation Rules
Frequency
To obtain Frequency to the CU the student must be present and discuss the Practical Assignment of the CU.
CONTINUOUS EVALUATION / NORMAL SEASON
The continuous assessment will be made through one individual test (T), one Mini-Test (MT) and one practical group assignment (TP).
Grade Normal Season = 0.4 T + 0.2 MT + 0.4 TP , with T >= 8 points
The student who obtains a final grade greater than or equal to 18.5 must take an oral defence of grade (on a date to be agreed). If the student does not attend the oral exam, the final grade will be 18 points.
The student obtains approval to UC if Grade Normal Season is greater than or equal to 9.5 values.
EVALUATION OF APPEAL SEASON
The evaluation of Appeal Season is made by Exam (E), being valid both for grade improvement and for approval to UC.
Grade Appeal Season = 0.6 E + 0.4 TP , with E >= 8
The student obtains approval to the CU if the Grade of Appeal Season is greater than or equal to 9.5 values.
The student who obtains a final grade greater than or equal to 18.5 must take an oral defence of grade (on a date to be agreed). If the student does not attend the oral exam, the final grade will be 18 points.
GRADE IMPROVEMENT
Students who intend to take the appeal exam, with a view to improving their grades, must, in advance, request this improvement from academic services.
Grade Improvement = max(E, 0.6 E + 0.4 TP)
The Exam includes all the topics evaluated in the Test.
Practical assignment cannot be improved.
Subject matter
1 – Basic concepts
2 - Capitalization Regimes
3 - Equity Capitals
4 - Financial Annuities
5 - Reimbursement of Loans
6 - Bond Loans
7 - Calculus and Financial Applications Capital
Programs
Programs where the course is taught: