Introduction to Financial Mathematics

Catalog description

Prerequisite: MATH 114 - Probability and Statistics for Business Majors (MATH 121 or MATH 125) and (MATH 114 or MATH 117 or MATH 117A or MATH 216) MATH 216 - Probability and Statistics for Natural Sciences Corequisite: None Restriction: None Dual Listed: MATH 548 Description: Undertakes a rigorous mathematical treatment of the theory associated with financial transactions. Uses geometric series and other concepts to construct mathematical models for analytically pricing various financial securities based on the time value of money. Explores how to construct mathematical models for pricing cash flows and the equivalency of different cash flows. Includes a detailed study of interest theory and financial economics. Prepares students for the Society of Actuaries Financial Mathematics (FM) exam.