Name: THE MATHEMATICS OF FINANCIAL OPERATIONS
Code: 510201005
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:
lunes - 09:00 / 11:00
EDIFICIO CIM - FCCE, planta 1, Despacho 142_B
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: 1 de investigación
Curriculum Vitae: Full Profile
Develop the metrics and operations of the most common Financial Operations in business and banking practice. Analyze and appropriately use financial information for decision-making and properly employ the various valuation tools specific to the field. Discern between correct banking practices and unethical conduct. Identify bad banking practices.
The basic concepts in the field of financial operations are developed, along with the financial laws that apply to the valuation of financial capital, the 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, activities related to the teaching-learning process will be carried out, as well as practical exercises to monitor the student's progress. These activities and final reports from the student in resolving practical exercises, for those who follow the continuous evaluation process (SEC) and wish to complete them, are valued up to 20% of the final grade (10% activities, 10% final report exercises). The grade obtained by the student in the voluntary completion of these participation activities and exercises will be retained during the academic year.
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.
Class in conventional classroom: theory, problems, case studies, seminars, etc
Described in the training program section. According to the subject's training program, instructional sessions will be conducted through lectures based on concepts and theories, with an estimated duration of 33 hours.
Competencies CG5 and CE07.
During the course, problem-solving classes will be held in instructional sessions aimed at developing practical knowledge, based on the resolution of exercises (competencies CB3, CG5, and CE07). The estimated duration of these sessions is 24 hours.
Learning outcomes 1, 2, 3, 4.
57
100
Assessment activities (continuous assessment system)
Described in the evaluation activities section.
During the course, there will be 2 written tests corresponding to the 2 partial exams scheduled in the SEC (the 1st partial exam covering topics 1 to 5 with a weight of 30% of the final grade, and the 2nd partial exam covering topics 6 to 10 with a weight of 50% of the final grade), some participation activities in the teaching-learning process that the student can voluntarily complete during the course (weighting 10% of the final grade); likewise, the student can prepare a report on the practical exercises carried out during the course to monitor their learning (10% of the final grade). The minimum score to pass each of the partial exams will be 40% of its maximum score, and once both partial exams are passed, the grades obtained in the activities and the practical exercise report completed by the students during the course will be added. The subject will be passed when the minimum scores in the partial exams are met, and the final grade is higher than 5 points out of 10 in the sum of the parts completed in the SEC.
The competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
3
100
Assessment activities (final assessment system)
In the final evaluation system (SEF), a written test with a maximum duration of 120 minutes will be conducted (for those being examined on 100% of the material), structured in the same parts as the SEC (continuous evaluation system). Students can retain the grade obtained in the partial exam that meets the minimum required score, as well as the activities or the report of practical exercises they completed during the course, and will only need to be examined in the final evaluation for the partial exam not passed.
The competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
3
100
Tutorials
Described in the tutoring section (15 hours), these sessions are aimed at resolving doubts, providing guidance, and monitoring the participation activities in the student's teaching-learning process.
15
50
Student work: study or individual or group work
It includes the completion of participation activities in the teaching-learning process and the submission of a course practical report (2 hours) by the student to develop practical knowledge of the subject (2 hours).
This study will enable the student to acquire competencies CB3, CG5, CE07, and CT6 and adequately achieve learning outcomes 1, 2, 3, 4.
Time dedicated to studying the subject.
72
0
Spoken or written exams
To pass the subject through continuous assessment, it is necessary for the student to complete both partial exams and achieve the minimum established score for them (40% of their weight in the subject grade). Participation and involvement activities in the teaching-learning process, and the report on the resolution of practical exercises proposed by the professor during the course, are voluntary and will be added to the grades of the two passed partial exams, with the subject being passed as long as an overall grade of 5 out of 10 is obtained.
The participation and involvement activities in the teaching-learning process that students can complete during the course will be graded up to 1 point out of 10 of the final grade. Similarly, the student can submit a report on the resolution of practical exercises carried out during the course, as proposed by the professor, to monitor their learning (graded up to 1 point out of 10). These points will be added to the grades obtained from the two partial exams once the required minimums are met.
During the course, two partial exams will be conducted. The 1st partial exam (covering topics 1 to 5) will be worth up to 3 points out of 10 of the final grade. The 2nd partial exam (covering topics 6 to 10) will be worth up to 5 points out of 10 of the final grade. To pass each partial exam, a minimum of 40% is required. The grade for the passed partial exam, or participation activities and practice reports, can be retained for the final exam during the 2 exam sessions of the course.
The final evaluation exam will correspond to the parts included in the continuous assessment, allowing the student to be examined on all the material and competencies or on the parts not passed in the continuous assessment process.
Competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
80 %
Participation and involvement in the teaching-learning process
During the course, at least 2 voluntary participation activities in the teaching-learning process will be conducted for those participating in the continuous evaluation system (SEC). These activities will have a weight of up to 1 point out of 10 of the final grade. The points earned by the student in these activities will be added to the final grade obtained in the two partial exams, provided that the minimum required is met in those exams, passing the subject when the cumulative grade of all parts of this evaluation exceeds 5 points out of 10. The grade obtained by the student in these participation activities will be retained throughout the academic year.
To ensure correspondence between the activities of the continuous evaluation system and the final evaluation, the activities of the continuous evaluation system may be replaced by questions in the final evaluation system.
Competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
10 %
Evaluation of assignments and reports on practical sessions (final product, follow-up and contribution in the case of group work)
During the course, students who wish to do so may submit to the professor a report on the practical exercises proposed in class, which will serve to monitor their learning progress. This deliverable will have a score of 10% out of 10 points. This grade will be added, along with the grade obtained in activities, to the result obtained by the students upon meeting the minimum requirements in the partial exams, passing the subject as long as the cumulative score of all parts is at least 5 out of 10.
10 %
Spoken or written exams
To pass the subject through continuous assessment, it is necessary for the student to complete both partial exams and achieve the minimum established score for them (40% of their weight in the subject grade). Participation and involvement activities in the teaching-learning process, and the report on the resolution of practical exercises proposed by the professor during the course, are voluntary and will be added to the grades of the two passed partial exams, with the subject being passed as long as an overall grade of 5 out of 10 is obtained.
The participation and involvement activities in the teaching-learning process that students can complete during the course will be graded up to 1 point out of 10 of the final grade. Similarly, the student can submit a report on the resolution of practical exercises carried out during the course, as proposed by the professor, to monitor their learning (graded up to 1 point out of 10). These points will be added to the grades obtained from the two partial exams once the required minimums are met.
During the course, two partial exams will be conducted. The 1st partial exam (covering topics 1 to 5) will be worth up to 3 points out of 10 of the final grade. The 2nd partial exam (covering topics 6 to 10) will be worth up to 5 points out of 10 of the final grade. To pass each partial exam, a minimum of 40% is required. The grade for the passed partial exam, or participation activities and practice reports, can be retained for the final exam during the 2 exam sessions of the course.
The final evaluation exam will correspond to the parts included in the continuous assessment, allowing the student to be examined on all the material and competencies or on the parts not passed in the continuous assessment process.
Competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
80 %
Participation and involvement in the teaching-learning process
During the course, at least 2 voluntary participation activities in the teaching-learning process will be conducted for those participating in the continuous evaluation system (SEC). These activities will have a weight of up to 1 point out of 10 of the final grade. The points earned by the student in these activities will be added to the final grade obtained in the two partial exams, provided that the minimum required is met in those exams, passing the subject when the cumulative grade of all parts of this evaluation exceeds 5 points out of 10. The grade obtained by the student in these participation activities will be retained throughout the academic year.
To ensure correspondence between the activities of the continuous evaluation system and the final evaluation, the activities of the continuous evaluation system may be replaced by questions in the final evaluation system.
Competencies evaluated will be CB3, CG5, CE07, and CT6.
Learning outcomes 1, 2, 3, 4.
10 %
Evaluation of assignments and reports on practical sessions (final product, follow-up and contribution in the case of group work)
During the course, students who wish to do so may submit to the professor a report on the practical exercises proposed in class, which will serve to monitor their learning progress. This deliverable will have a score of 10% out of 10 points. This grade will be added, along with the grade obtained in activities, to the result obtained by the students upon meeting the minimum requirements in the partial exams, passing the subject as long as the cumulative score of all parts is at least 5 out of 10.
10 %
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
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Publication Date: 1994
ISBN: 843442097
Author: González Velasco, María del Carmen
Title: Análisis de las operaciones financieras (150 supuestos resueltos)
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Author: Navarro, Eliseo
Title: Fundamentos de matemáticas financieras
Editorial: Antoni Bosch
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ISBN: 8495348012
Author: Gil Peláez, Lorenzo
Title: Matemáticas de las operaciones financieras: problemas resueltos
Editorial: Ac
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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
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ISBN: 8472881237
Author: Meneu, Vicente
Title: Operaciones financieras en el mercado español
Editorial: Ariel
Publication Date: 1994
ISBN: 8434420910