Università degli Studi di Napoli "Parthenope"

Teaching schedule

Academic year: 
2016/2017
Belonging course: 
Course of Bachelor's Degree Programme on ECONOMICS AND BUSINESS
Disciplinary sector: 
MATHEMATICAL METHODS OF ECONOMY, FINANCE AND ACTUARIAL SCIENCES (SECS-S/06)
Language: 
Italian
Credits: 
9
Year of study: 
3
Teachers: 
Dott.ssa CORSARO Stefania
Cycle: 
Second semester
Hours of front activity: 
72

Language

Italian

Course description

The student should know and understand the main issues related to the evaluation of financial contracts, in particular bonds and loans, the definition of contracts value in capital market, the construction of the term structure of interest rates, the applications of financial instruments in business valuation.

Prerequisites

General knowledge of Calculus acquired in previous courses, in particular functions, limits, continuity and differentiability of real-valued functions of a single variable, derivatives, graphing, functions of several variables: partial derivatives, linear algebra problems, solution of non-linear equations, integrals: analytical and computational techniques.

Syllabus

• Part I Money, time and risk (18 hours)
- Temporal structure of money exchange, capital and interest (chap. 1)
- Contracts, prices, trading (chap. 2)
- Financial risks(chap. 3, except par. 3.3 and 3.5)
• Part II Valuation under certainty (24 hours)
- Compound interest and its generalization to the exponential growth model (chap. 4, par. 4.1-4.3)
- Loans amortization (chap. 5, par. 5.1, 5.2.1, 5.5.1, 5.5.2)
- Internal rate of return (chap. 6, except par. 6.3 and 6.4)
- Rules of financial equivalence (chap. 7, par. 7.1, 7.2, 7.4.1, 7.5, 7.6 except 7.61. and 7.6.2)
• Part III Market evaluation of contracts (30 hours)
- Value function and market price (chap. 8)
- Term structure of interest rates (chap. 9, except par. 9.5)
- Measures of timing and sensitivity (chap. 10, except par. 10.1.8 and 10.2.6)
- Valuation methods of the term structure of interest rates (chap. 11, par. 11.2.1, 11.2.2, 11.4)
- No-arbitrage valuation of index contracts (chap. 12, except par. 12.5)

• Part I Money, time and risk
- Temporal structure of money exchange, capital and interest
- Contracts, prices, trading
- Financial risks
• Part II Valuation under certainty
- Compound interest and its generalization to the exponential growth model
- Loans amortization
- Internal rate of return
- Rules of financial equivalence
• Part III Market evaluation of contracts
- Value function and market price
- Term structure of interest rates
- Measures of timing and sensitivity
- Valuation methods of the term structure of interest rates
- No-arbitrage valuation of index contracts

Teaching Methods

Frontal lections. Lab activities to develop Excel-based software procedures to solve financial problems. Students can practice and consolidate their language skills on the dedicated section on the Moodle E-learning of the University “Parthenope”.

Textbooks

E. Castagnoli, M. Cigola, L. Peccati – Financial calculus with applications– Egea editore.

Learning assessment

Written examination, on the contents of program course and an oral examination to verify the acquired knowledge and understanding and the ability of the student to apply the knowledge.

More information

the student should know and understand the main issues related to the evaluation of financial contracts, in particular bonds and loans, the definition of contracts value in capital market, the construction of the term structure of interest rates, the applications of financial instruments in business valuation.

Mutuazioni

  • Study course MANAGEMENT DELLE IMPRESE INTERNAZIONALI - Training course in PERCORSO COMUNE