FINANCIAL MATHEMATICS

This course belongs to the characterizing teaching activities of the bachlor course "Economia e Commercio" in the curriculum Economics, Markets and Finance. In line with the educational objectives of the course, this activity aims to present the main financial mathematical tools necessary for the analysis of financial problems; particular attention will be devoted to operational abilities that enable to solve the main financial probems that arise in business and personal finance.

Knowledge and understanding skills.
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.

Second- or later-year students cannot take any exam if they have ALR (Additional Learning Requirements) pending.

- Time value of money and interest rates (Simple interest, discount interest, compound interest).
- 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 bond portfolio immunization.

1. S. Romagnoli, Mathematical Finance, a. Theory, b. Practice, Esculapio Economia 2015.
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).

Learning assessment is conducted through a written exam (90-minute). The exam consists of exercises and questions (a mix of exercises and open questions) to assess the skills acquired in solving problems related to the topics covered in the course and their ability to apply the theoretical framework to real cases. During the written exam, the use of books, notes, and electronic aids is not allowed; a calculator and a list of a maximum of 15 formulas are admitted. Through solving the exercises and answering the questions, the student must demonstrate knowledge of the topics covered in the course and the ability to present them formally.
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

scritto

The entire course covers 30 academic hours of teaching with traditional lectures. There are also 10 extra hours of exercise sessions.

Students are required to register for the course on the moodle platform of the university (moodle.unive.it).

Questo insegnamento tratta argomenti connessi alla macroarea "Capitale umano, salute, educazione" e concorre alla realizzazione dei relativi obiettivi ONU dell'Agenda 2030 per lo Sviluppo Sostenibile