Iğdır University Lifelong Learning Programme

Description of Individual Course Units

Course Unit Code	Course Unit Title	Type of Course Unit	Year of Study	Semester	Number of ECTS Credits
210300407110	FINANCIAL MATHEMATICS - I	Elective	4	7	6

Level of Course Unit

First Cycle

Objectives of the Course

Name of Lecturer(s)

Ögr. Gör. Özlem ÖZDEMİR

Learning Outcomes

1	Understanding fundamental concepts and application areas of financial mathematics.
2	Performing simple and compound interest calculations and applying them in financial contexts.
3	Conducting mathematical calculations related to annuities and installment payment systems.
4	Performing cash flow analysis and contributing to financial planning processes.
5	Using bond and stock valuation methods to assess investment decisions.
6	Evaluating investment projects financially by calculating net present value (NPV) and internal rate of return (IRR).
7	Gaining knowledge about financial markets and instruments and mathematically analyzing financial tools.
8	Understanding modern portfolio theory and portfolio optimization principles to minimize investment risks.
9	Performing calculations related to options and futures and evaluating financial derivative products.
10	Using financial risk measurement models (such as VaR) to conduct risk analysis.
11	Examining behavioral finance models and analyzing individual investor behavior.
12	Applying acquired financial mathematics knowledge to problem-solving and decision-making processes.

Mode of Delivery

Daytime Class

Prerequisites and co-requisities

Recommended Optional Programme Components

Course Contents

This course aims to teach the use of mathematical techniques in financial decision-making processes. In addition to fundamental financial mathematics concepts, topics such as interest calculations, bond and stock valuation will be covered in detail. The course focuses on simple and compound interest calculations, investment project evaluation, financial risk models, portfolio optimization, and option pricing. Students will gain an understanding of financial decision-making mechanisms and develop the ability to apply this knowledge to real-world scenarios.

Weekly Detailed Course Contents

Week	Theoretical	Practice	Laboratory
1	Introduction to Financial Mathematics /Definition and importance of financial mathematics	Application areas of financial mathematics
2	Fundamental Financial Mathematics Concepts /Nominal and real interest rates /Concepts of financial risk and return
3	Simple and Compound Interest Calculations /Simple interest calculation formulas /Compound interest calculation methods
4	Installment Payments and Annuities /Definition and calculation of annuities /Fixed and variable annuities
5	Cash Flow Analyses /Analysis of cash flow statements /Cash flow discounting methods
6	Bond and Stock Valuation /Bond pricing models /Stock valuation methods
7	Evaluation of Investment Projects /Net present value (NPV) analysis /Internal rate of return (IRR) calculations
8	Midterm Exam
9	Financial Markets and Instruments /Definition and types of financial markets /Mathematical analysis of financial instruments
10	Portfolio Optimization /Modern portfolio theory /Risk and return calculations
11	Options and Futures / Option pricing models / Mathematical structure of futures contracts
12	Mathematical Models for Financial Risk / Value at Risk (VaR) calculations / Quantitative analysis of financial risk
13	Behavioral Financial Mathematics / Behavioral finance and market anomalies / Behavioral analysis using mathematical models
14	General Review and Final Exam Preparation / General review of the course and Q&A session / Study session for the final exam

Recommended or Required Reading

Ross, S. A., Westerfield, R., & Jordan, B. D. (2021). Fundamentals of Corporate Finance. McGraw-Hill. Hull, J. C. (2020). Options, Futures, and Other Derivatives. Pearson. Elton, E. J., Gruber, M. J., Brown, S. J., & Goetzmann, W. N. (2020). Modern Portfolio Theory and Investment Analysis. Wiley.

Planned Learning Activities and Teaching Methods

Assessment Methods and Criteria

Term (or Year) Learning Activities	Quantity	Weight
Midterm Examination	1	100
SUM		100
End Of Term (or Year) Learning Activities	Quantity	Weight
Final Examination	1	100
SUM		100
Term (or Year) Learning Activities		40
End Of Term (or Year) Learning Activities		60
SUM		100

Language of Instruction

Turkish

Work Placement(s)

Workload Calculation

Activities	Number	Time (hours)	Total Work Load (hours)
Midterm Examination	1	1	1
Final Examination	1	2	2
Attending Lectures	13	4	52
Individual Study for Mid term Examination	1	50	50
Individual Study for Final Examination	1	75	75
TOTAL WORKLOAD (hours)			180

Contribution of Learning Outcomes to Programme Outcomes

	PO 1	PO 2	PO 3	PO 4	PO 5	PO 6	PO 7	PO 8	PO 9	PO 10
LO1	4	4	4	4	4	4	4	4	4	4
LO2	4	4	4	4	4	4	4	4	4	4
LO3	4	4	4	4	4	4	4	4	4	4
LO4	4	4	4	4	4	4	4	4	4	4
LO5	4	4	4	4	4	4	4	4	4	4
LO6	4	4	4	4	4	4	4	4	4	4
LO7	4	4	4	4	4	4	4	4	4	4
LO8	4	4	4	4	4	4	4	4	4	4
LO9	4	4	4	4	4	4	4	4	4	4
LO10	4	4	4	4	4	4	4	4	4	4
LO11	4	4	4	4	4	4	4	4	4	4
LO12	4	4	5	4	5	4	4	4	4	4

* Contribution Level : 1 Very low 2 Low 3 Medium 4 High 5 Very High