FINANCIAL MATHEMATICS FOR BUSINESS

The teaching is among the core ones of the master's degree programme in Amministrazione, Finanza e Controllo. It aims to provide the essential knowledge to deal with operational problems of classical Financial Mathematics, which are of interest for company management and for professional consultancy. Spreadsheets are also used in the course to solve such problems.

1. Knowledge and understanding:
1.1. understanding the logic underlying the exchange of monetary amounts due at different times;
1.2. understanding the mathematical tools necessary for financial calculation;
1.3. recognizing the different types of complex financial transactions (annuity, amortization of a debt, bond loan ...).

2. Ability to apply knowledge and understanding:
2.1. analytically formalizing the various types of complex financial transactions;
2.2. applying the mathematical tools for solving operational problems;
2.3. implementing financial calculations by using spreadsheets.

3. Judgement skill:
3.1. interpreting the results coming from financial analyses and calculations;
3.2. understanding virtues and drawbacks of the models of classical financial Mathematics;
3.3. reflecting on financial problems based on an analytical method.

Keeping fresh in mind the educational objectives of the following teachings of the bachelor's degree programme in the economic area: Mathematics - 1, Mathematics - 2, Computational Tools for Management.

- Financial laws.
- Annuities.
- Effects of inflation and of exchange rates changes.
- Leasing evaluation.
- Valuation of loans and mortgages both with fixed interest rate and with variable interest rate.
- Bond evaluation.
- Problems of choice among investment alternatives solved using an electronic spreadsheet: NPV; IIR; TRM.
- Convenience analysis of instalment plans and of deferred payments: TAN; TAEG.
- Operational applications by an electronic spreadsheet.

- Basso A., Pianca P. (2017) Introduzione alla matematica finanziaria, Wolters Kluwer. [Reference textbook] (Chapters: 1; 2 up to page 46; 3 except sections 3.5 and 3.6; 4 except sections 4.3 and 4.4; 5 except sections 5.3.7 and 5.7.3; 6).
- Corazza M. (2017) L'n-esimo eserciziario di Matematica Finanziaria. (Last edition), G. Giappichelli Editore. [Reference textbook]

- Teaching materiasl available at the web page of the e-learning platform Moodle.

- Allevi E., Bosi G., Riccardi R., Zuanon M. (2012) Matematica Finanziaria e Attuariale, Pearson. [Integrative reading]
- Barzanti L., Pezzi A. (2014) Problemi risolti di Matematica Finanziaria. Esercizi e casi di studio, Esculapio Economia. [Integrative reading]
- Benninga S. (2010) Modelli Finanziari. La Finanza con Excel, McGraw Hill. [Integrative reading]

The exam consists in a homework and in a written test.
Homework: 1) must be carried out by using a spreadsheet; 2) must be carried out in groups; 3) is valid only for the current academic year and not beyond; 4) its carrying out must be sent no later than a pre-established deadline (the way of sending and the deadline will be indicated during the course).
Written test: 1) has a duration of 80 minutes; 2) involves the answer to four multiple choice questions and the solution of two exercises; 3) each question has 4 possible answers, of which only one is correct; 4) for solving the exercises is possible to use a formulary drawn up by the student constituted by 10 formulas and a non-graphic and non-programmable scientific calculator; 5) the carrying out of the exercises must show all the necessary arrangements and all the calculations must be justified. Notes or other similar material can not be consulted;
Regarding the evaluation: 1) the homework is worth 0 to 4 possible points; 2) each question is worth 0 or 1,5, for a total from 0 to 6 points; 3) each exercise of the written test is worth 0 to 10 possible points, for a total from 0 to 20 points.
The sum of the points obtained in the homeworks and in the written test constitutes the final grade.

written

The lecturer has a duty to ensure that the rules regarding the authenticity and originality of exam tests and papers are respected. Therefore, if there is suspicion of irregular conduct, an additional assessment may be conducted, which could differ from the original exam description.

Evaluation grid:
- 18–22: incomplete and inaccurate completion of the homework; barely sufficient knowledge of the tools, methods, and models of classical Financial Mathematics; ability to address only simple aspects of problems in classical Financial Mathematics; minimal ability to correctly perform financial calculations.
- 23–26: complete but not entirely accurate completion of the homework; mediocre knowledge of the tools, methods, and models of classical Financial Mathematics; average ability to tackle problems in classical Financial Mathematics; fair ability to correctly perform financial calculations.
- 27–30L: complete and rigorous completion of the homework; good to excellent knowledge of the tools, methods, and models of classical Financial Mathematics; ability to successfully address problems in classical Financial Mathematics; excellent ability to correctly perform financial calculations.

The course is articulated into:
a) lectures, also with the use of software;
b) classroom exercises by tutors;
c) individual study.
Students are strongly encouraged to actively attend classes.

- Site of the course on the e-learning platform Moodle.

- Possible presence of a tutor.

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