Study program:

Business Administration (B.Sc.)

Academic level and semester:

Bachelor, 3^rd semester

ECTS credits/workload per semester:

1 / 25

Contact hours per week/contact hours per semester:

1 / 15

Type/Teaching method:

Lecture with interactive exercises, case studies, presentations; weekly tutorials in small student groups

Frequency:

Every semester

Lecturer:

Prof. Dr. Leander Geisinger

Content:

This course equips students with the ability to apply theoretical principles of classical and modern financial mathematics to practical problems related to investment and financing decisions. Students will gain a thorough understanding of the mathematical foundations of interest rates, the time-value of money, and compounding. They will learn to evaluate financial products such as annuities and loans and compare various financing and investment opportunities. Additionally, the course links classical financial mathematics to modern financial mathematics, focusing on the valuation of financial products like bonds and derivatives. Students will break down complex financial products into their basic components and apply suitable mathematical methods to solve valuation problems. Contents are as follows:

• The Time-Value of Money
• Interest Rates, Compounding, Present and Future Values
• Annuities, Loans, Amortization, and Capital Investments
• Valuation of Bonds
• Valuation of Derivatives

The course combines lectures and class discussions with practical exercises conducted in small groups. Students will work on real-world problems, case studies, and examples to apply both classical and modern financial mathematics. Presenting and discussing solutions to exercises serves as a valuable self-evaluation tool for students.

Textbooks:

Lecture slides, collections of exercises; literatur:
Luderer, Bernd: Starthilfe Finanzmathematik. Stuttgart, Leipzig: Teubner 2002; Sydsæter, Knut; Hammond, Peter: Essential Mathematics for Economic Analysis. Harlow:
Pearson Education 2002; Tietze, Jürgen: Einführung in die Finanzmathematik. Braunschweig/Wiebaden: Vieweg 2003; Luderer, Bernd: Classical Financial Mathematics, Wiesbaden, Springer Fachmedien, 2021

Restrictions:

None

Assessment:

Written exam