Introduction to Mathematical Finance: 3 semester hours

Catalog description

Introduce students to the fundamental topics of mathematical finance. It will touch on stochastic processes and stochastic calculus and will discuss the Black-Scholes-Merton model for pricing European-style options. The course tries to keep a balance between rigorous mathematics (analysis of the financial models, stating explicitly the assumptions, and deriving the governing equations for the mathematical models) and developing understanding and intuition when the models can be applied in practice. Prerequisites: ( MATH 3302 or MATH 4317 or MATH 4325 ).