Financial Mathematics

Course code MATH3750Units 10Level 3000Faculty of Science and Information TechnologySchool of Mathematical and Physical Sciences

Financial considerations influence all aspects of our lives. A good understanding of the mathematical models on which many financial decisions are made is essential. This course will enable students to carry out many of the calculations used in financial modelling and to appreciate the approximations used to obtain tractable solutions to complex financial dealings.
The course includes material on difference equations and stochastic equations of various types which underpin much of the financial modelling used in commerce and world financial markets.

MATH3750 is compulsory for students taking a finance co-major in the BMath degree.

Not available in 2014

Previously offered in 2010, 2009, 2008, 2007, 2006, 2005, 2004
Objectives1.To give students a basic understanding of the mathematical techniques used to solve financial problems.

2.To develop skills in mathematical modelling of financial dealings.

3.To develop an approach to problem-solving in situations where the underlying data are subject to uncertainty.
Content* difference equations

* theory of interest rates

* annuities

* cash flow

* valuation of securities

* consumer credit

* derivative pricing
Replacing Course(s)n/a
Industrial Experience0
Assumed KnowledgeMATH1120 or MATH1220.
Modes of DeliveryInternal Mode
Teaching MethodsLecture
Integrated Learning
Assessment Items
Essays / Written Assignments
Examination: Formal
Laboratory Exercises
Contact HoursLecture: for 3 hour(s) per Week for Full Term