Financial and Actuarial Mathematics
Get the Flash Player to see this player.
 
 

Administrated by: Department of Applied Mathematics and Informatics, Faculty of Economics, University of South Bohemia
Lecturer: PhDr. Marek Šulista
Prerequisite: MAT or MATEA
Academic Year: 2008/2009
Lectures/Seminars: 2/2
Credits: 5

Course Introduction:
The course of Financial and Actuarial Mathematics has two main goals. The first one is to introduce students to the basic terminology, models, principles, and mathematical calculations of financial and actuarial mathematics and their apllications. The latter is to deepen the students' knowledge of English in the field of business and finance.

Syllabus:
1 - introduction to the course, assignments; basic terminology; percentages; arithmetic, geometric and harmonic (weighted) mean
2 - arithmetic and geometric sequence
3 - simple interest, bank discount, bill of exchange
4 - compound and continuous interest, combination of simple and compound interest
5 - real and effective interest rate, inflation, current account
6 - simple and general annuities
7 - loan and mortgage redemption
8 - assets depreciation
9 - zero and coupon bonds
10 - shares, options
11 - mortality tables
12 - life insurance
13 - life annuities

Credit Requirements:
Passing two credit tests. Students will take two credit tests worth 11 points each. To pass each of the tests, it is necessary to score at least 6 points. To be entitled for the credit, it is necessary to score from both tests at least 15 points in total. Each test can be resit once only. The better score will be included in the final mark.

Exam Requirements:
Only students who meet the credit requirements can take the exam. During the exam, students demonstrate that their mastery of computer utilisation (MS Excel) when soolving complex problems of financial and actuarial mathematics (i.e. construction of debt amortization table, commutation tables with a given insurance-technical rate etc.) The exam contains two problems worth 3% each. To pass the exam, it is necessary to score at least 4%. The obtained score is added to the final sum of pints scored in the credit tests.

The final mark is determined as follows:
  • 71% - 77%: dobře
  • 78% - 83%: velmi dobře minus
  • 84% - 89%: velmi dobře
  • 90% - 95%: výborně minus
  • 96% a více: výborně

Literature:
Zima, P. - Brown L., R.: Schaum's Outline of Theory and Problems of Mathematics of Finance, McGraw-Hill Companies, Inc., New York, 1996.
Šulista, M. - Nýdl, V.: Úvod do finančí a pojistné matematiky - Introduction to financial and Actuarial Mathematics, EF JU, České Budějovice, 2008
Macháček, O.: Finanční a pojistná matematika, Prospektrum, Praha, 2001
Cipra, T.: Praktický průvodce finanční a pojistnou matematikou, Edice HZ, Praha, 1995
Cipra, T: Pojistná matematika, Ekopress, Praha, 1999.
Radová, J. - Dvořák, P: Finanční matematika pro každého, Grada Publishing, Praha, 2001.