APPLIED MATHEMATICS (TURKISH, THESIS) | |||||
Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 |
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 |
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. |
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. |
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. |
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 |
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 |
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 |
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 |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution |