Course: Introduction to Financial Mathematics

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Course title Introduction to Financial Mathematics
Course code UMKM/PZFM
Organizational form of instruction Lecture + Tutorial
Level of course Bachelor
Year of study 1
Semester Winter
Number of ECTS credits 4
Language of instruction Czech
Status of course Compulsory, Compulsory-optional
Form of instruction Face-to-face
Work placements unspecified
Recommended optional programme components None
Lecturer(s)
  • Jindrová Pavla, Mgr. Ph.D.
Course content
Attributes of money, financial market, financial supply and demand. Time order, rate of interest. Bearing interest in the period of unit length. Simple and compound interest. Combination of simple and compound interest. Cash flow and its value. Importance of savings, models of savings. Short-term and long-term saving, combination of short-term and long-term saving. Conception of income, models of incomes. Models of immediate and deferred incomes. Credits and its attributes, schedule of payments, models of credit repayments.

Learning activities and teaching methods
Monologic (reading, lecture, briefing), Dialogic (discussion, interview, brainstorming), Work with text (with textbook, with book)
Learning outcomes
The aim of the course is to acquaint the students with basic terms and processes of the classical financial mathematics. The accent is put on the ability of students to use acquired knowledge in several practical and theoretical economic fields.
Student will able to use acquired knowledge in the applications of financial mathematics, i.e. how to select the suitable process or method in solving concrete situations and how to defend this solution.
Prerequisites
The students are supposed to have the knowledge of mathematics in a range common at the high school.

Assessment methods and criteria
Written examination, Student performance assessment

The course credit - is granted for the basis of active participation and write tests are passed successfully (for 65% at least).
Recommended literature
  • Cipra, Tomáš. Finanční a pojistné vzorce. Praha: Grada, 2006. ISBN 80-247-1633-X.
  • Cipra, Tomáš. Praktický průvodce finanční a pojistnou matematikou. Praha: HZ Editio, 1995. ISBN 80-901918-0-0.
  • Huťka, Vladimír. Finančná matematika v Exceli. Bratislava: Iura Edition, 2010. ISBN 978-80-8078-320-4.
  • Macháček, Otakar. Finanční a pojistná matematika : úrok a úročení, modely opakovaných plateb, burzovní operace při složeném úročení, pojistné operace. Praha: Prospektrum, 2001. ISBN 80-7175-104-9.
  • Parkinson, R. Financial Mathematics and Statistics. South Wirral: Checkmate Gold, 1989. ISBN 1-85313-037-0.
  • Radová, Jarmila. Finanční matematika pro každého. Praha: Grada, 2013. ISBN 978-80-247-4831-3.
  • Sekerka B. Matematické a statistické metody ve financování, cenných papírech a pojištění. Profess Consulting Praha, 2002.
  • Sekerka, Bohuslav. Finanční a pojistná matematika. Pardubice: Univerzita Pardubice, 2005. ISBN 80-7194-810-1.
  • Šulista, Marek. Introduction to financial and actuarial mathematics. České Budějovice: Jihočeská univerzita, 2006. ISBN 80-7040-919-3.


Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester
Faculty: Faculty of Economics and Administration Study plan (Version): Public Economics and Administration (2014) Category: Economy 2 Recommended year of study:2, Recommended semester: Winter
Faculty: Faculty of Economics and Administration Study plan (Version): Public Economics and Administration (2013) Category: Economy 2 Recommended year of study:2, Recommended semester: Winter
Faculty: Faculty of Economics and Administration Study plan (Version): Management of Financial Risks (2013) Category: Economy 1 Recommended year of study:1, Recommended semester: Winter
Faculty: Faculty of Economics and Administration Study plan (Version): Management of Financial Risks (2014) Category: Economy 1 Recommended year of study:1, Recommended semester: Winter
Faculty: Faculty of Economics and Administration Study plan (Version): Management of Financial Risks (2015) Category: Economy 1 Recommended year of study:1, Recommended semester: Winter
Faculty: Faculty of Economics and Administration Study plan (Version): Public Economics and Administration (2015) Category: Economy 2 Recommended year of study:2, Recommended semester: Winter