Financial Mathematics

Code:

1GE101

Acronym:

CF

Keywords
Classification	Keyword
OFICIAL	Management Studies

Instance: 2015/2016 - 1S

Active?	Yes
Responsible unit:	Management
Course/CS Responsible:	Bachelor in Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LGES	175	Bologna Syllabus since 2012	1	-	6	42	162

Teaching language

Portuguese

Objectives

- To get the students acquainted with financial mathematics, learning the fundamentals on which it is based, and being able to use it in solving practical problems.

- To get students to know some financial instruments, and to use financial mathematics in such instruments.

- To get students to master the concept and the calculation of index numbers and their practical application, particularly with regard to the calculation of inflation rates and the distinction between nominal and real values.

- To give students the opportunity of using Excel functions to solve problems of financial mathematics.

Learning outcomes and competences

It is expected to endow the students with skills:

- Be able to use financial mathematics in solving practical problems.

- Be able to use financial mathematics in some financial instruments.

- Be able to compute and to use index numbers.

- Be able to use Excel functions to solve problems of financial mathematics.

Working method

Presencial

Program

1. Financial Mathematics

 1.1. Fundamentals

 1.2. Future value and present vale of a single cash flow

 1.3. Nominal and efective interest rates

 1.4. Future value and present vale of a series of cash flows

 1.5. Solving the equivalence equation for other variables

 1.6. Repayment of loans

 1.7. Nominal interest rates, real interest rates and price indexes

2. Financial Instruments

 2.1. Bond loans

 2.2. Equity shares

 2.3. Other instruments

 

Mandatory literature

Matias, Rogério ; Cálculo Financeiro - Teoria e Prática (4ª edição), Escolar Editora, 2012. ISBN: 9789725923610

Complementary Bibliography

Chaves, C., Maciel, E., Guimarães, P. e Ribeiro, J. ; Instrumentos Estatísticos de Apoio à Economia: Conceitos Básicos, McGraw-Hill, 1999
Miguel, C., ; Matemática Financeira Aplicada, Edições Asa, 1994

Teaching methods and learning activities

The lectures are used for presentations and problem solving.

Software

Microsoft Excel

keywords

Social sciences > Economics > Management studies

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	120,00
Frequência das aulas	42,00
Total:	162,00

Calculation formula of final grade

According to the following rules:

- Students may choose between the final exam and distributed assessment withou final exam.

- Distributed assessment without final exam is made of two tests.

- The first test will take place during the semester on the date set by the Padagogical Council, and the second test on the day of the final exam.

- The tests are non-comprehensive.

- The final grade is equal to the weighted average of the grades obtained in each test, the weights being 50% for each test.

- In order to pass the course students must have a score of at least 9,5 and at least 6,0 in each test. If someone fails to get the minimum grade at the first test she/he will not be able to sit at the exam (Época Normal). 

- Only the students enrolled in classes can access distributed assessment without final exam.

- The final exam is made of a written test. In order to pass the course students must have a score of at least 9,5.

 - Students that fail the course can retake the exam in a second period of exams.

- In tests and exams students should bring a sheet with formulas and a calculator.

Special assessment (TE, DA, ...)

According to the rules and regulations.

Classification improvement

In order to improve the final mark students may resit the final examination.