Financial Calculus

Catalog description

The course presents an overview of topics in and related to actuarial math, including the time value of money, annuities, and amortization. It looks at financial mathematics in terms of bonds, internal rate of return, and term structure of interest rates. It then considers financial calculus with discrete financial models, market models, risk free assets with a concentration on bonds and money markets, and risky assets. Finally, the course introduces financial engineering including the Black-Scholes Equations using probabalistic methods and applications to options and derivatives.