FINANCIAL MATHEMATICS
- Academic year
- 2024/2025 Syllabus of previous years
- Official course title
- FINANCIAL MATHEMATICS
- Course code
- ET0089 (AF:450060 AR:255845)
- Modality
- On campus classes
- ECTS credits
- 6
- Degree level
- Bachelor's Degree Programme
- Educational sector code
- SECS-S/06
- Period
- 4th Term
- Course year
- 2
- Where
- VENEZIA
- Moodle
- Go to Moodle page
Contribution of the course to the overall degree programme goals
Expected learning outcomes
Attendance and active participation in lectures, online activities, exercise sessions, and group work, together with individual study, will allow the student to acquire the following knowledge and understanding skills:
- know and use the main concepts necessary to describe and understand main financing and investment instruments available to individuals and firms;
- know the mathematical techniques and methods useful to formalize and analyze financial situations.
Ability to apply knowledge and understanding.
Through the interaction with the instructors, the tutors, and peers and through individual study, the student acquires the following abilities:
- know how to use quantitative instruments to cope with standard as well as more complex financial operations;
- know how to choose the most appropriate technique to solve the concrete problem under analysis;
- know how to compare different financial opportunities.
Judgment skills, communication skills, and learning skills.
Regarding the autonomy of judgment, communication skills, and learning abilities, through the personal and group study of the concepts seen in class, the student will be able to:
- formulate rational justifications for the approach used to analyze financial problems and situations, understanding their relative strengths and weaknesses;
- know how to formulate and communicate an adequate analysis and financial interpretation of mathematical models and tools.
Pre-requirements
Contents
- Foreign currencies and exchange rates.
- Annuities and sinking funds, Mortgages, and amortization schemes.
- Fixed income securities. Valuation of bonds and elements of the term structure of interest rates.
- Duration and elements of bond portfolio immunization.
Referral texts
2. A. Broverman (2017), Mathematics of investment and credit, 7th edition, ACTEX.
3. Lecture notes.
Other references
D.G. Luenberger, Investment Science, Oxford University Press, 2012 (part I).
T.J. Biehler, The mathematics of money, McGraw-Hill, 2008 (Chapters 1 to 5 and selected applications from part two).
Assessment methods
A final mark of at least 18/30 is needed to pass the exam.
With regard to the grading scale (criteria for assigning grades), regardless of attendance:
A. Scores in the range of 18-22 will be assigned in the presence of:
-Sufficient knowledge and ability to understand applied with reference to the program;
-Limited ability to gather and/or interpret data, formulating independent judgments;
-Sufficient communication skills, especially concerning the use of specific language related to the topics covered in the program;
B. Scores in the range of 23-26 will be assigned in the presence of:
-Fair knowledge and ability to understand applied in reference to the program;
-Fair ability to gather and/or interpret data, formulating independent judgments;
-Fair communication skills, especially concerning the use of specific language related to the topics covered in the program;
C. Scores in the range of 27-30 will be assigned in the presence of:
-Good or excellent knowledge and ability to understand applied in reference to the program;
-Good or excellent ability to gather and/or interpret data, formulating independent judgments;
-Fully appropriate communication skills, especially concerning the use of specific language related to the topics covered in the program;
D. Honors will be awarded for excellent knowledge and ability to understand applied to the program, excellent judgment skills, and excellent communication abilities."
Additionl information and a mock exam are available in the Moodle page of the course
Teaching methods
Teaching language
Further information
Type of exam
2030 Agenda for Sustainable Development Goals
This subject deals with topics related to the macro-area "Human capital, health, education" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development