Faculty Of Economıc, Admınıstratıve And Socıal Scıences
Busıness Admınıstratıon ( Englısh )
Course Information
| FINANCIAL MATHEMATICS | |||||
|---|---|---|---|---|---|
| Code | Semester | Theoretical | Practice | National Credit | ECTS Credit |
| Hour / Week | |||||
| MAN221 | Fall | 3 | 0 | 3 | 3 |
| Prerequisites and co-requisites | |
|---|---|
| Language of instruction | English |
| Type | Elective |
| Level of Course | Bachelor's |
| Lecturer | Prof. Dr. Süleyman TÜRKEL |
| Mode of Delivery | Face to Face |
| Suggested Subject | |
| Professional practise ( internship ) | None |
| Objectives of the Course | The main objective of this course is to provide materials to the students about characteristics of economic systems, economics goals and tools, mathematical formulas of macroeconomics and microeconomics and relation between economic agents which operate in economic system. |
| Contents of the Course | In this course, concepts of functions, simple algebra, linear algebra, limit, derivative, integral, which are expected to be needed by business students in real and financial markets will be studied. |
Learning Outcomes of Course
| # | Learning Outcomes |
|---|---|
| 1 | At the end of this lecture, students have optimal level of capabilities in order to analysis real and financial markets |
| 2 | Students prove on basic financial an economical mathematical concepts. |
| 3 | Students use quantitative methods and their applications in real and financial markets en the end of this lecture |
| 4 | At the end of the course, students explain the interaction between financial and real markets. |
Course Syllabus
| # | Subjects | Teaching Methods and Technics |
|---|---|---|
| 1 | Introduction To Financial Markets, Description of Risk, İnterest Rate (Nominal/Simple and Compound), Excel Applications and Introduction Linear Algebra. | Interaktive Written Expression |
| 2 | Computation of Simple and Compound İnterest Rate. Applications in Excel. Linear Algebra | Interaktive Written Expression |
| 3 | Effective Interest Rate and Examples. Continuous Compound Interest Rate. Nominal and Real Interest Rate. Applications in Excel. Linear Algebra. | Interaktive Written Expression |
| 4 | Equal Payments (Annuities), Future Values of Annuities. Number of Annuities. Periodic Interest Rate of Annuity. Nper of Annuities. Applications in Excel. Linear Algebra. | Interaktive Written Expression |
| 5 | Debt Retirement. Debt Retirement with Perpetual Annuity. Perpetual Annuity (At the beginning of period and at the end of of period). Debt retirement with equal principal npe. Applications in Excel. Linear Algebra | Interaktive Written Expression |
| 6 | Intro. Project Evaluation Methods. Applications in Excel. Linear Algebra. | Interaktive Written Expression |
| 7 | Bond and other capital markets instruments, Bond/Credit - Rating Institutions | Interaktive Written Expression |
| 8 | Mid-Term Exam | Open-end questions |
| 9 | Valuation of Stocks and Bonds | Interaktive Written Expression |
| 10 | Introducing of Financial Institutions operating in the Capital Markets | Interaktive Written Expression |
| 11 | Financial Institutions and their tasks in capital markets | Interaktive Written Expression |
| 12 | Stockbrokers, portfolio management companies and credit rating companies | Interaktive Written Expression |
| 13 | Independent auditing firms, investment funds, investment trusts, venture capital firms, real estate value firms, individual retirement firms and so on. | Interaktive Written Expression |
| 14 | Evaluation of the financial informations strategically. | Interaktive Written Expression |
| 15 | Overview | Interaktive Written Expression |
| 16 | Final Exam | Open-end questions |
Course Syllabus
| # | Material / Resources | Information About Resources | Reference / Recommended Resources |
|---|---|---|---|
| 1 | M. Capinski and T. Zastawniak, 2001, “Mathematics For Finance: An Introduction To Financial Engineering”, Springer, NewYork. | ||
| 2 | Prof. Dr. Turhan KORKMAZ, Prof. Dr. Ali CEYLAN: Sermaye Piyasası ve Menkul Değer Analizi, 7.baskı, Ekin Kitabevi, Bursa, 2015. | ||
| 3 | Michael Melvin, Stefan C. NORBIN: International Money and Finance, Eighth Edition. | ||
| 4 | Dan Stefanica : A Linear Algebra Primer for Financial Engineering: Covariance Matrices, Eigenvectors, OLS, and more. |
Method of Assessment
| # | Weight | Work Type | Work Title |
|---|---|---|---|
| 1 | 40% | Mid-Term Exam | Mid-Term Exam |
| 2 | 60% | Final Exam | Final Exam |
Relationship between Learning Outcomes of Course and Program Outcomes
| # | Learning Outcomes | Program Outcomes | Method of Assessment |
|---|---|---|---|
| 1 | At the end of this lecture, students have optimal level of capabilities in order to analysis real and financial markets | 3͵5͵6͵13͵14͵15 | 1͵2 |
| 2 | Students prove on basic financial an economical mathematical concepts. | 3͵5͵6͵13͵14͵15 | 1͵2 |
| 3 | Students use quantitative methods and their applications in real and financial markets en the end of this lecture | 3͵5͵6͵13͵14͵15 | 1͵2 |
| 4 | At the end of the course, students explain the interaction between financial and real markets. | 3͵5͵6͵13͵14͵15 | 1͵2 |
Work Load Details
| # | Type of Work | Quantity | Time (Hour) | Work Load |
|---|---|---|---|---|
| 1 | Course Duration | 14 | 3 | 42 |
| 2 | Course Duration Except Class (Preliminary Study, Enhancement) | 14 | 1 | 14 |
| 3 | Presentation and Seminar Preparation | 0 | 0 | 0 |
| 4 | Web Research, Library and Archival Work | 0 | 0 | 0 |
| 5 | Document/Information Listing | 0 | 0 | 0 |
| 6 | Workshop | 0 | 0 | 0 |
| 7 | Preparation for Midterm Exam | 1 | 14 | 14 |
| 8 | Midterm Exam | 1 | 2 | 2 |
| 9 | Quiz | 0 | 0 | 0 |
| 10 | Homework | 0 | 0 | 0 |
| 11 | Midterm Project | 0 | 0 | 0 |
| 12 | Midterm Exercise | 0 | 0 | 0 |
| 13 | Final Project | 0 | 0 | 0 |
| 14 | Final Exercise | 0 | 0 | 0 |
| 15 | Preparation for Final Exam | 1 | 20 | 20 |
| 16 | Final Exam | 1 | 3 | 3 |
| 95 | ||||