Objectives and competences
Students:
1. Gain the ability to solve problems from business practice.
2. Enhance their theoretical knowledge in the field of financial mathematics.
3. Acquire mathematical knowledge and skills needed for quantitative and qualitative study of processes in business and finance and problem solving.
4. Gain the ability to apply their theoretical knowledge in practice in valuation of risk-free assets and some risky assets.
5. Make critical judgements based on a sound theoretical base.
Content (Syllabus outline)
1. Proportions, percentage, equations in business
2. Simple interest
3. Compound interest
4. Mathematics of debt
5. Revalorization
6. Cost-benefit analysis
7. Application of compound interest in valuation of derivative securities (examples)
Learning and teaching methods
- lectures;
- technical demonstration;
- active work
Intended learning outcomes - knowledge and understanding
Development of knowledge and understanding:
Students:
1. Understand basic concepts in the field of financial and business mathematics.
2. Learn to apply different methods of compounding in problem solving from business and financial practice.
3. Acquire the knowledge necessary to pursue further analysis regarding the field of financial mathematics (valuation of risky assets).
4. Can demonstrate awareness of ethical issues in the field of business and financial practice.
5. Are able to discuss ethical issues in relation to personal beliefs and values.
Cognitive/Intellectual skills:
Students:
1. Can select appropriate method for problem solving and are able to evaluate the importance and significance of the result.
2. Can identify key aspects of problem from different view points.
3. Students develop greater independence of thought and the ability to solve problems.
Intended learning outcomes - transferable/key skills and other attributes
Key/Transferable skills
Students:
1. Upgrade the ability to become an autonomous learner.
2. Develop professional ethics.
3. Develop learning techniques and strategies for individual study, permanent reflection and evaluation.
4. Develop interest for lifelong learning.
Readings
Obvezna študijska literatura (Compulsory textbooks):
1. Marovt J., Breznik K. (2014). Praktikum iz poslovno-finančne matematike, FNM, Maribor.
2. Capinski M., Zastawniak T. (2003). Mathematics for finance, an introduction to financial engineering, Springer-Verlag, London.
Dodatna študijska literatura (Additonal textbooks):
1. Marovt J. (2009). Gradivo pri predmetu Poslovno-finančna matematika: naloge z rešitvami, EPF, Maribor.
2. Čibej J. A. (2001). Matematika za računovodje in finančnike, Zveza računovodij, finančnikov in revizorjev Slovenije, Ljubljana.
3. Tietze J. (2006). Einfuerung in die Finanzmathematik, Vieweg Verlag, Braunschweig-Wiesbaden.
4. Ihrig H. (2003). Finanzmathematik: Intensivkurs, Oldenburg, München.
5. Marovt J. (2010). Gradivo pri predmetu Poslovno-finančna matematika: Efektivna in nominalna obrestna mera, zbirka rešenih zgledov (aktuarski pristop), EPF, Maribor.
Additional information on implementation and assessment 10% - Active participation at lectures and tutorials
90% - Written examination
Student may replace the written examination with two term examinations which are equivalent to the written examination.
