The course aims at introducing the analytical tools to formalize, evaluate and manage economic and financial problems. Students will acquire the basic theoretical and practical skills to deal with problems of evaluation and management of financial problems. They will also be able to describe financial problems and communicate mastering the main technical terms of the discipline.
Course Prerequisites
Basic calculus
Teaching Methods
Lectures will be held in the traditional way. These are lectures in which the teacher presents the topics of the program with the help of a electronic whiteboard and projector. Students will then be able to follow the steps and take notes. Selected problems will be solved using spreadsheets and financial data. With the limits imposed by the high number of attending students, the questions of clarification, repetition and in-depth analysis asked by the students will be considered a positive enrichment of the lectures.
Assessment Methods
Written assessment. Knowledge of the topics covered in the course will be verified, through applications and exercises. A scientific calculator is required for the test. The exam will consist of some exercises covering the entire course program. The evaluation scale ranges from 0 to 30 cum laude, with passing the test upon reaching 18/30. Each exercise will have the same weight in the evaluation. The results will be communicated through the university esse3 system. Between the publication and the registration, the viewing of the tasks will be organized.
Texts
A. Palestini, Dispense di Matematica Finanziaria, MEMOTEF, Sapienza Universit`a di Roma. Disponibili al link https://memotef.web.uniroma1.it/sites/default/files/Dispense%20di%20MATEMATICA%20FINANZIARIA%20-%20Arsen%20Palestini_0.pdf Additional exercises and materials will be available on the e-learning space.
Contents
- Time value of money -Geometric sequences - Annuities, perpetuities and capital accumulation - Amortization - Financial valuation - Corporate bonds - Fixed income market, spot and forward rates - Firm valuation, Gordon model
