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) |