- Docente: Rossella Agliardi
- Credits: 8
- SSD: SECS-S/06
- Language: Italian
- Teaching Mode: Traditional lectures
- Campus: Rimini
- Corso: First cycle degree programme (L) in Economics of Tourism (cod. 8847)
Learning outcomes
The aim of the course is to provide the fundamentals of Mathematical Finance. In particular, students will be able to understand and evaluate some financial contracts that are usually faced in business management. Some simple stategies for risk control and diversification will be presented.
Course contents
Basic principles of financial mathematics: simple/commercial convention versus compound/instantaneous ones. Annuities. Perpetuities. Debt amortization. Evaluation of a generic financial transaction: NPV, IRR.
Fixed income market: zero coupon bonds, fixed coupon bonds, duration, yield-to-maturity. The Italian governmental bonds. Term structure of interest rate.
Valuation of risky investments. Mean-variance. Risk and volatility. Financial derivatives: forward and future contracts, options.
Readings/Bibliography
F. Cacciafesta, Lezioni di matematica finanziaria classica e moderna, Ed. Giappichelli Torino
Teaching methods
Lectures and exercises.
A few Lab classes are strongly reccommended.
Assessment methods
Written exam consisting of 4-5 exercises. Please note that the relevant topics (amortization, bonds, mean-variance) will be always proposed in the written exam.
An active participation in the Lab classes will improve the final grade.
Further information will be provided during the first lecture.
Teaching tools
Slides. A list of exercises and some Excel speadsheets will be made available.
Office hours
See the website of Rossella Agliardi