INGLESE

To have already all the knowledge in the program of General Mathematics

The course is organized into 44 hours of lectures with both theoretical and practical content and exercises on the R software. Class attendance is strongly recommended.

The students will learn the theoretical elements for a correct methodological approach to quantitative finance problems in order to understand their relevant terms and characteristics; they will be able to use problem-solving techniques.

The students will be able to solve issues related to financial assessments in the economic and business environment, so that they can make a rational choice between several alternatives and decide the best of several options. The exercises carried out during the course aim to use theoretical tools to arrive at clear numerical evaluations.

Criticism of judgment: the students will be aware of the results obtained through the knowledge of the theoretical/technical procedures followed to achieve them; they will be able to formulate autonomous and objective judgements and will be able to recognize wrong or inefficient solutions in an economic-firm logic.

Communication skills: the students will learn to communicate in a simple, unambiguous and clear way the results achieved, even and especially if they are the result of complex procedures and also to people with different cultural backgrounds, in order to facilitate the exchange of information in an efficient way.

Learning skills: the students will be able to carry out the activities of financial evaluator in the business and economic field, making use of the lessons of theory and applications carried out in the computer lab, enriched by interactions with the teacher.

Financial operations. Actuarial methods for calculating interests and discounts. Effective rates. Nominal rates. Force of interest. Applications with R.

Annuities. Present value and accumulated value of an annuity. Annuities classification. Problems concerning constant annuities: determining present value, amounts to pay, number of payments, interest rate. Applications with R.

Amortizing a loan. Amortization methods. Sinking fund. Usufruct and bare ownership. Applications with R.

Evaluating and selecting economic-financial projects. Selection criteria: N.P.V. and I.R.R. Applications with R.

Debt securities: bonds. Bootstrapping. Time and variability indices. The term structure of interest rates. Applcations with R.

The final examination is written. It consists of short exercises and questions designed to assess the learning of the topics covered and the actual ability to apply their knowledge. During the written exam it is not allowed to consult any material support; it is permissible to use a scientific calculator that does not have graphics capabilities.

For students with disabilities or Specific Learning Disability (SLD) who have contacted the University Disability/SLD Info Point to request support for the specific curricular exam, please note that the way the exam is taken can be adapted in accordance with the University Guidelines (https://www.univpm.it/Entra/Accoglienza_diversamente_abili).

In the written exam, the students must demonstrate knowledge of the topics and methods for classical financial mathematics. The ability to apply the acquired knowledge is evaluated by solving the assigned problems.

The final mark is attributed in thirtieths. The examination is passed if the grade is greater than or equal to 18. It is foreseen to award the highest marks with Laude (30 cum laude).

The final grade is set on the basis of written exam, according to scores obtained in each exercise.

Chan, Wai-Sum, and Tse, Yiu-Kuen, Financial Mathematics for Actuaries. World Scientific Publishing Company, Third Edition, 2021, ISBN: 978-9811245671 (soft cover) or 978-9811243295 (ebook).

Vaaler, L.J.F., Harper, S.K., and Daniel, J.W. Mathematical Interest Theory. The Mathematical Association of America, Third Edition, 2019, ISBN: 978-1470465681 (soft-cover) or 978-1470455309 (ebook).

Handouts will be provided during the class.

There is not e-learning modality planned for this course.