Course Information
Course Code MATH 2P75
Course Title Introductory Financial Mathematics
Description Applications of mathematics to financial markets. Models for option pricing, rates of interest, price/yield, pricing contracts and futures, arbitrage-free conditions, market risk, hedging and sensitivities, volatility; stock process as random walks and Brownian motions; Black-Scholes formula; finite difference methods and VaR.
Course Format Lectures, lab, 4 hours per week.
Prerequisite(s) MATH 1P97 and 1P98.