The course on Financial Mathematics focuses on the mathematical properties and relations between concepts of financial and currency markets in investment and other economic activities. The course aims to enthuse confidence in participants to be able to address issues related to globalization of financial markets, development and feasibility of financial transactions, the increasing complexity of portfolio investments, analyzing and forecasting market developments etc. Students in the course will gain an in-depth understanding of advanced economics concepts as well as knowledge of how the financial and banking sectors operate.
INTENDED AUDIENCE: Interested LearnersPREREQUISITES : Basic Mathematics, ProbabilityINDUSTRY SUPPORT : Useful for most of the companies, especially for managers and persons in investment and finance sectors
Week 1:Mathematical introduction, Growth and decay curves Week 2: Simple interest, bank discount Week 3:Compound interest, discrete compounding Week 4:Compounding frequency of interest, Economic equivalence Week 5:Method of comparison of alternatives, Project balance Week 6:Credit and loan, Cost of credit and amortization Week 7:Depreciation and depletion Week 8:Breakeven analysis, Leverage Week 9:Stocks and bonds, Valuation of stocks and bonds Week 10:Mutual funds, Options, Cost of capital and ratio analysis Week 11:Decision under risk &uncertainty, Risk premium, Portfolio diversification Week 12:Life Insurance, Endowment, and annuities, Insurance policies