Name: THE MATHEMATICS OF FINANCIAL OPERATIONS
Code: 510101007
Type: Basic
ECTS: 6
Length of subject: Per term
Semester and course: 1st Year - First term
Speciality:
Language: English
Mode of study: On-site class
Lecturer data: RAMÓN LLORENS, MARÍA DEL CAMINO
Knowledge area: Economía Financiera y Contabilidad
Department: Economía, Contabilidad y Finanzas
Telephone: 868071045
Email: camino.ramon@upct.es
Office hours and location:
jueves - 12:00 / 14:00
EDIFICIO CIM - FCCE, planta 1, Despacho FCE
viernes - 11:00 / 13:00
EDIFICIO CIM - FCCE, planta 1, Despacho FCE
Para quedar en un horario diferente mandar un correo electrónico: camino.ramon@upct.es
Qualifications/Degrees:
Academic rank in UPCT: Profesora Titular de Universidad
Number of five-year periods: 3
Number of six-year periods: 0
Curriculum Vitae: Full Profile
Lecturer data: LOZANO GUTIÉRREZ, MARÍA DEL CARMEN
Knowledge area: Economía Financiera y Contabilidad
Department: Economía, Contabilidad y Finanzas
Telephone: 968325611
Email: carmen.lozano@upct.es
Office hours and location:
jueves - 08:00 / 14:00
EDIFICIO CIM - FCCE, planta 1, Despacho 133
Se necesita confirmación del alumno para programar las tutorías
Qualifications/Degrees:
PhD in Degree in Business and Economics from Technical University of Cartagena (SPAIN) - 2001
Academic rank in UPCT: Profesora Titular de Universidad
Number of five-year periods: 7
Number of six-year periods: 1 de investigación
Curriculum Vitae: Full Profile
[CB3 ]. Students are required to have the ability to gather and interpret relevant data (usually within their area of study) to make judgments that include a reflection on relevant issues of a social, scientific or ethical nature.
[CG5 ]. To learn about and manage financial-banking operations.
[CE07 ]. To describe and analyze the financial metrics of the different sources of financing and savings of the company.
[CT6 ]. Applying ethical and sustainability criteria in decision making
Develop the metrics and operations of the most frequent financial operations in business and banking practice.
Analyze and use appropriately financial information for decision-making and use the different assessment tools specific to the subject.
Discern between correct banking practice versus unethical behavior.
Identify bad banking practices.
In the field of financial operations, Basic concepts are developed, such as financial laws that apply to the valuation of financial capital, operations with financial capital and their integration into the most common savings and financing operations.
UD.1: FUNAMENTAL CONCEPTS OF FINANCIAL MATHEMATICS
1.1.1. Financial Phenomenon
1.1.2. Financial Capital
1.1.3. Financial Space
1.2. Financial equivalence. Properties of equivalence
1.2.1. Financial Equivalence
1.2.2. Properties of equivalence
1.2.3 Financial preference
1.3. Financial laws. Properties
1.3.1. Financial laws
1.3.2. Properties of financial laws
1.4. The principle of capital equivalence
1.4.1. Properties of equivalence
1.4.2. Sum of financial capital
1.5. Financial operation. Classification
1.6. The financial factor
1.7. Mathematical reserve
UD.2: FINANCIAL LAWS OF CAPITALIZATION
2.1. Simple and compound capitalization
2.1.1. Introduction
2.1.2. Calculation of the total or final capital in simple capitalization
2.1.3. Calculation of the total or final capital end in compound capitalization
2.1.4. Graphic Representation
2.1.5. Analytic Justification
2.1.6. Interests for the commercial and calendar year in simple capitalization
2.1.7. Calculation of the duration of the operation
2.1.8. Calculation of the capital based on the previous one
2.1.9. Calculation of interest rate
2.2. Conventions for the calculation of the total in compound capitalization with split time
2.2.1. Exponential Convention
2.2.2. Linear Convention
2.2.3. Difference between both conventions
2.3. Calculation of time by linear convention
2.4. Calculation of the percentage by the linear convention
2.5. Inflation in financial operations
UD.3: FRACTIONED CAPITALIZATION
3.1. Simple fractional and compound capitalization
3.2. Equivalence amounts
3.3. T.A.E. or E.A.R (effective annual rate) and the nominal amount. Relations of equivalence between them
3.4. Relation between the nominal amount and the frecuency of capitalization
3.5. The anticipated annual interest rate. Equivalence with E.A.R
UD4: OPERATIONS IN CAPITALIZATION
4.1. Conversion of a capital in another multiple of itself
4.2. Displacement of capital
4.3. Equivalent capital units
4.3.1. Compound capitalization
4.3.2. Simple capitalization
4.4. Single capital. Common expiration
4.4.1. Single capital
4.4.2. Common Due Date
4.5. The average due date and the average amount
4.5.1. Average Due Date
4.5.2. Average Amount
D.U.5: THE FINANCIAL DISCOUNT OPERATION
5.1. The commercial discount operation
5.2. Simple update
5.2.1. Simple Rational Discount
5.2.2. Simple Commercial Discount
5.2.3. Both the equivalent interest to the discount
5.3. Compound update
5.3.1. Compound Rational Discount
5.3.2. Composed Commercial Discount
5.3.3.Both the equivalent interest to that of a discount
5.4. Comparison between simple rational discount and composed
rational discount
5.5. Equivalence of capital units and the discount
5.6. Bank commissions. Non-payment, return and overdue drafts re-exhange bill
D.U.6: INTRODUCTION OF FINANCIAL INCOMES
6.1. Concept of income
6.2. General income classification
6.3. Financial value of an income. Post-payability and pre-payability
6.3.1. Temporal, variable, immediate and post-payable income
6.3.2. Temporal, variable, immediate and pre-payable income
6.4. Calculation of the current value and the final of an immediate income
6.4.1. Current value of a constant, immediate and post-payable income
6.4.2. Current value of an immediate, constant and pre-payable income
6.4.3. Final value of a constant income, immediate and post-payable
6.4.4. Final value of a constant income, immediate and pre-payable
6.4.5. Relation between current value and final value
6.5. Deferred incomes
6.5.1. Current value of a constant income, post-payable and deferred
6.5.2. Current value of a constant income, pre-payable and deferred
6.5.3. Final value of a constant income, post-payable and deferred
6.5.4. Final value of a constant income, pre-payable and deferred
6.6. Anticipated incomes
6.6.1. Current value of a constant income, post-payable and anticipated
6.6.2. Final value of a constant income, post-payable and anticipated
6.7. Perpetual incomes
6.7.1. Current value of a constant, immediate, perpetual and
post-payable income
6.7.2. Current value of a constant, immediate, perpetual and
pre-payable income
6.7.3. Current value of a constant, deferred, perpetual and
pre-payable income
6.7.4. Current value of a constant, immediate, perpetual and
pre-payable income
6.8. Calculate the time in the post-payable immediate incomes
D.U. 7: CONSTANT FRACTIONAL INCOMES WITH HIGH PERIODICITY IN THE YEAR AND CONTINUOUS
7.1. Fractional, immediate, post-payable income
7.1.1. Current value
7.1.2. Final value
7.2. Fractional, immediate, pre-payable income
7.2.1. Current value
7.2.2. Final value
7.3. Deferred fractional income
7.3.1. Post-payable income. Current value
7.3.2. Pre-payable income. Current value
7.4. Anticipated fractional income
7.4.1. Post-payable income. Final value
7.4.2. Pre-payable income. Final value
7.5. Perpetual fractional income
7.5.1. Post-payable income. Current value
7.5.2. Deferred and post-payable income. Current value
7.5.3. Pre-payable income. Current value
7.5.4. Deferred and pre-payable income. Current value
7.6. Fractional incomes according to the equivalent amount
7.7. Periodicity incomes greater than a year: Immediate, deferred, anticipated and perpetual
7.7.1. Post-payable immediate income
7.7.2. Pre-payable immediate income
7.7.3. Deferred income
7.7.4. Anticipated income
7.7.5. Perpetuate income
7.7.6. Periodicity incomes greater than a year according to the equivalent amount
7.8. Continuous incomes
7.9. Incomes fractioned by annual block
D.U. 8: VARIABLE INCOMES IN GEOMETRIC AND ARITHMETIC PROGRESSION
8.1. Variable annual income in geometric progression
8.1.1. Post-payable income
8.1.2. Pre-payable income
8.1.3. Deferred income
8.1.4. Particular case of indetermination:
8.1.5. Perpetual Rent
8.2. Variable annual income in arithmetic progression
8.2.1. Post-payable terms
8.2.2. Pre-payable terms
8.2.3. Perpetual rent
8.3. Fractioned variable income
8.4. Fractioned variable incomes by annual blocks
8.5. Variable fractioned perpetual incomes by annual blocks
8.6. Continuous variable incomes
D.U. 9: AMORTIZATION OPERATION: GENERAL CASE. LOANS WITH SINGLE REIMBURSEMENT
9.1. The amortization operation. General concepts
9.2. Loan classification
9.3. General case
9.3.1. Post-payable interest
9.3.2. Pre-payable interest
9.4. Amortizable loans through single reimbursement
9.4.1. Amortizable loans through comprehensive single reimbursement of capital and interest: elemental loan operation
9.4.2. Amortization through single reimbursement of the capital, and interest paid periodically: American Loan Operation
D.U. 10: LOAN AMORTIZATION WITH CONSTANT INCOMES
10.1. French or progressive amortization system
10.2. German amortization system on anticipated interests
10.3. Particular case: Deferment (lack)
10.3.1. French Method
10.4. Loans with fractioned interest and annual amortization: French method
10.4.1. According to the Fractioned Amount
10.4.2. According the Nominal Amount
10.5. Loan with fractioned amortization and interest: French method
10.5.1. According to the Nominal Amount
GENERAL
During the course, practices related to the teaching-learning process will be carried out. These practices will be mandatory for those students who follow the continuous evaluation process and are valued with up to 30% of the final grade. The grade obtained by the student in carrying out these activities will be kept until the following academic year. The practical activities not passed may be substituted by questions in the final exam for the student who has followed the continuous evaluation process.
Promoting the continuous improvement of working and study conditions of the entire university community is one the basic principles and goals of the Universidad Politécnica de Cartagena. Such commitment to prevention and the responsibilities arising from it concern all realms of the university: governing bodies, management team, teaching and research staff, administrative and service staff and students. The UPCT Service of Occupational Hazards (Servicio de Prevención de Riesgos Laborales de la UPCT) has published a "Risk Prevention Manual for new students" (Manual de acogida al estudiante en materia de prevención de riesgos), which may be downloaded from the e-learning platform ("Aula Virtual"), with instructions and recommendations on how to act properly, from the point of view of prevention (safety, ergonomics, etc.), when developing any type of activity at the University. You will also find recommendations on how to proceed in an emergency or if an incident occurs. Particularly when carrying out training practices in laboratories, workshops or field work, you must follow all your teacher's instructions, because he/she is the person responsible for your safety and health during practice performance. Feel free to ask any questions you may have and do not put your safety or that of your classmates at risk.
Unit 1 ¿ The student should know and understand the principles on which this course is based on. Financial laws, rules of the projection of capital over time and the principle of equivalence of the financial capital.
Unit 2 -. The student will know the application of the most common financial laws. They should be able to distinguish among the different ways of expressing the interest rate and the financial equivalences between them.
Unit 3 -. The student will know how to value financial transactions in which the frequencies of charges and payments are lower than one year.
Unit 4 -. The student should acquire the skills needed to handle financial transactions, capital comparisons and equivalences between capitals.
Unit 5 -. The student will know the banking operations of the financial discount, a very common operation in all the companies.
Units 6, 7, 8, 9: The student should be able to understand the valuation of complex financial transactions.
Unit 10 -. The student should be able to know the loan operations such as amortization tables.
Class in conventional classroom: theory, problems, case studies, seminars, etc
It is described in the program section formative. According to the program, training sessions will be taught
based on concepts and theories.
Learning outcomes: all of them
Competences: CG5, CE07
During the course, training classes will be held, which will be oriented to develop the practical knowledge, based on resolution of exercises.
Learning outcomes: all of them
Competences: CB3, CG5, CE07
58
100
Assessment activities (continuous assessment system)
It is described in the evaluation system section. During the course students will take 2 written exams corresponding to the 2 partials provided for in the SEC.
The first partial exam will consist of topics 1 to 5, and it will account for 30% of the final grade for the subject. The second partial exam will include topics 6 to 10, with a weight of 50% of the final grade. The teaching-learning activities proposed by the professor will account for a maximum of 20% of the final grade.
The minimum grade for each partial exam will be 40% of its value, and for SEC activities it will be 30% of their value.
To pass the course, once the minimums of each part have been passed, the student must obtain a minimum of 5 points out of 10.
Competences: CB3, CG5, CE07, CT6
Learning outcomes: 1, 2, 3, 4
2
100
Assessment activities (final assessment system)
In the final evaluation system (SEF) students will take a written exam. The exam will be structured in the same parts that in the SEC:
- the 1st part (units 1-5) corresponding to the 1st part. 30% of the final grade.
- the 2nd part (units 6-10) corresponding to the 2nd part. 50% of the final grade.
- the 3rd part with exam questions about participation activities in the learning planned for the subject. 20% of the final grade.
Students can reserve the grade obtained in any evaluative activity of the SEC as long as they meet the minimum required grade.
Competences: CB3, CG5, CE07, CT6.
Learning outcomes: 1, 2, 3, 4
2
100
Tutorials
Described in the tutoring section (16 hours). These activities are aimed at answering any questions about theory, solving doubts, provide guide and carry out the monitoring the activities of participation in the teaching-learning process.
16
50
Student work: study or individual or group work
It includes self-study and carrying out activities of participation in the teaching-learning process (2 hours)
Time dedicated to studying the subject
Competences: CB3, CG5, CE07, CT6
Learning outcomes: 1, 2, 3, 4
72
0
Spoken or written exams
To pass the course through continuous assessment, it is necessary to meet the minimum requirements for each partial exam, and the final grade obtained from the partial exams and participation in the teaching-learning process must be at least 5 points out of 10.
There will be two partial exams:
the 1st partial exam covering topics 1 to 5 (up to 3 points out of 10 for the final grade) with a minimum requirement of 1.2 points out of 3 to pass and have the grade saved for the final exam.
The second partial exam will cover topics 6 to 10 (up to 5 points out of 10 for the final grade) and requires a minimum of 2 points out of 5 to pass and have the grade saved for the final exam.
Competences: all of them
Learning outcomes: all of them
80 %
Participation and involvement in the teaching-learning process
During the course, the student should carry out some practices and activities for his/her participation in the teaching-learning process (for those who participate in the continuous evaluation system (SEC)). Those practices will have a weight of up to 2 points out of 10 for the final grade (with a minimum of 30% of that weight) to pass them or have the grade saved for the final exam. The grade obtained by the student in the completion of these participation activities will be preserved throughout the academic year.
For the purpose of establishing correspondence between the activities of the continuous and final evaluation systems, continuous evaluation system activities can be replaced in the final evaluation system by some questions.
Competences: all of them
Learning outcomes: all of them
20 %
Evaluation of assignments and reports on practical sessions (final product, follow-up and contribution in the case of group work)
0 %
Spoken or written exams
For those students who do not follow the SEC, the global final exam will be divided into 3 parts:
- topics 1 to 5 of the official agenda (3 points out of 10)
- topics 6 to 10 (5 points out of 10).
- questions related to the learning participation activities carried out during the course (2 points out of 10)
Therefore 100%, which will be requested in a writing exam.
If the minimum of any of the SEC exams and activities is exceeded, the student is entitled to save the passed exam during the academic year. The activities of the continuous assessment system not passed may be replaced in the final assessment system by others, such as questions in a final exam.
Competences: all of them
Learning outcomes: all of them
100 %
Author: Ramón Pintado, Tomás
Title: Fundamental Concepts of Financial Mathematics theory and practice
Editorial: Universidad Politécnica
Publication Date: 2011
ISBN: 9788496997707
Author: Ramón Pintado, Tomás
Title: Problemas de matemáticas financieras
Editorial: Universidad Politécnica de Cartagena
Publication Date: 2009
ISBN: 9788496997257
Author: Ramón Pintado, Tomás
Title: Matemáticas financieras
Editorial: Universidad Politécnica de Cartagena
Publication Date: 2009
ISBN: 9788496997264
Author: Pintado Ramón, Tomás
Title: Fundamental concepts of financial mathematics: theory and practice
Editorial: Universidad, Servicio de Documentación
Publication Date: 2011
ISBN: 9788496997707
Author: Levi, Eugenio
Title: Curso de matemática financiera y actuarial
Editorial: Bosch
Publication Date: 1973
ISBN: 8471626055
Author: Ferruz Agudo, Luis
Title: Operaciones financieras: descripción, análisis y valoración
Editorial: Ariel
Publication Date: 1994
ISBN: 843442097
Author: González Velasco, María del Carmen
Title: Análisis de las operaciones financieras (150 supuestos resueltos)
Editorial: Civitas
Publication Date: 2001
ISBN: 8447016188
Author: González Velasco, María del Carmen
Title: Análisis de las operaciones financieras
Editorial: Civitas,
Publication Date: 2008
ISBN: 9788447028931
Author: Navarro, Eliseo
Title: Fundamentos de matemáticas financieras
Editorial: Antoni Bosch
Publication Date: 2001
ISBN: 8495348012
Author: Gil Peláez, Lorenzo
Title: Matemáticas de las operaciones financieras: problemas resueltos
Editorial: Ac
Publication Date: 1989
ISBN: 8472881229
Author: Lóbez Urquía, J.
Title: Matemática financiera: con nociones de cálculo actuarial
Editorial: s.n.
Publication Date: 1968
ISBN:
Author: Gil Peláez, Lorenzo
Title: Matemática de las operaciones financieras
Editorial: AC
Publication Date: 1987
ISBN: 8472881237
Author: Meneu, Vicente
Title: Operaciones financieras en el mercado español
Editorial: Ariel
Publication Date: 1994
ISBN: 8434420910