• Basic concepts in finance, arbitrage opportunities
• Complements on the capitalization rules. Evaluation of a cash flow, factorization property of the discount factor in the exponential law
• Complements on the evaluation of annuities and on amortizations of a loan
• Return indicators of a financial transaction
• Bonds, Italian Government bonds, inflation, real and nominal interest rates
• Theory of the financial portfolio
Knowledge of the course programme, ability in reason and relate the different concepts, ability in tackling the proposed exercises
Prerequisites
Basic mathematical analysis, basic financial mathematics, basic probability theory
Teaching Methods
Classes of theory and exercizes
Further information
The course has an internet page on the platform Moodle, which provides further information on the course.
Type of Assessment
Oral examination. In the case that many students want to make the exam, I will propose the questions in written form.
Course program
• Basic concepts in finance, arbitrage opportunities.
• Complements on the capitalization rules. Evaluation of a cash flow, factorization property of the discount factor in the exponential law.
• Complements on the evaluation of annuities and on amortizations of a loan, floating rates, early repayment. Creation of a capital, or of a supplementary pension.
• Return indicators of a financial transaction: TIR, existence, uniqueness, Newton method, more about TAN and TAEG
• Bonds, Italian Government bonds: BOT, BTP, CTZ, CCT, CCT Eu; inflation, real and nominal interest rates, BTP Euro-i, BTP Italia
• Theory of the financial portfolio: recall of important tools of probability theory, feasible portfolios with two assets, portfolio choice with two assets