APPLIED MATHEMATICS (TURKISH, THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
MAT5023 Introduction to Mathematical Finance Fall
Spring
3 0 3 12
The course opens with the approval of the Department at the beginning of each semester

Basic information

Language of instruction: Tr
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Dr. GENCO FAS
Course Objectives: The purpose of this course is to give the student a background in the theory of interest, provide an understanding of cashflows and the ability to compare investment decisions. The course material is designed to meet the requirements of national and international exams of actuarial science.

Learning Outputs

The students who have succeeded in this course;
Students will learn how to apply compound interest theory to find the present value and accumulated value of cashflows, will know about types of annuities certain and will be able to evaluate yield rates and compare investment decisions. This course will also demonstrate how loan repayments can be determined and will treat some special products.

Course Content

Time value of money, simple and compound interest, accumulated value and present value, solution of interest problems, basic and general annuities, yield rates, amortisation tables and loan funds, discounted cashflow, capital redemption policies.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Money-Time Relationships and Equivalence.
2) Interest Rate Concept, Nominal and Effective Interest Rates
3) Present Value - Future Value Calculations
4) Discount Rate Calculations
5) Annuities, Loan and Leasing Applications
6) Arithmetic and Geometric Gradients
7) Applications of Money-Time Relationships.
8) Comparing Investment Alternatives.
9) Depreciation and Income Taxes.
10) Price Changes and Exchange Rates.
11) Replacement Analysis.
12) Probabilistic Risk Analysis.
13) Capital Financing and Allocation.
14) Review

Sources

Course Notes: The Theory of Interest, Kellison S.G., Irwin Inc., U.S.A., 1991. An Introduction to Mathematics of Finance, Cutcheon, J.J. and Scott, W.F., Butterworth-Heinemann, Oxford, 1996.
References: SOA sınav soruları/SOA exam questions. http://www.soa.org/education/exam-req/syllabus-study-materials/edu-multiple-choice-exam.aspx

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Attendance 14 % 10
Laboratory % 0
Application % 0
Field Work % 0
Special Course Internship (Work Placement) % 0
Quizzes % 0
Homework Assignments 2 % 20
Presentation % 0
Project % 0
Seminar % 0
Midterms 1 % 30
Preliminary Jury % 0
Final 1 % 40
Paper Submission % 0
Jury % 0
Bütünleme % 0
Total % 100
PERCENTAGE OF SEMESTER WORK % 60
PERCENTAGE OF FINAL WORK % 40
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Laboratory 0 0 0
Application 0 0 0
Special Course Internship (Work Placement) 0 0 0
Field Work 0 0 0
Study Hours Out of Class 14 9 126
Presentations / Seminar 0 0 0
Project 0 0 0
Homework Assignments 2 10 20
Quizzes 0 0 0
Preliminary Jury 0
Midterms 1 2 2
Paper Submission 0
Jury 0
Final 1 10 10
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Ability to assimilate mathematic related concepts and associate these concepts with each other.
2) Ability to gain qualifications based on basic mathematical skills, problem solving, reasoning, association and generalization.
3) Be able to organize events, for the development of critical and creative thinking and problem solving skills, by using appropriate methods and techniques.
4) Ability to make individual and team work on issues related to working and social life.
5) Ability to transfer ideas and suggestions, related to topics about his/her field of interest, written and verball.
6) Ability to use mathematical knowledge in technology.
7) To apply mathematical principles to real world problems.
8) Ability to use the approaches and knowledge of other disciplines in Mathematics.
9) Be able to set up and develope a solution method for a problem in mathematics independently, be able to solve and evaluate the results and to apply them if necessary.
10) To be able to link abstract thought that one has to concrete events and to transfer the solutions and examine and interpret the results scientifically by forming experiments and collecting data.
11) To be able to conduct a research either as an individual or as a team member, and to be effective in each related step of the project, to take role in the decision process, to plan and manage the project by using time effectively.
12) To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself,