Financial Mathematics

Course No.:1080044    Credit(s): 3

Course Description

Financial Mathematics is a course in the Seventh semester，which is a compulsory  course of majors of Mathematics and Finances. It is a course to find out the law of financial behavior, using mathematical tools, such as the mathematical model, theoretical analysis, numerical calculation and other quantitative analysis to study the finance.

By studying Financial Mathematics, students can master the different types of interest (simple interest, discount interest, compound interest), annuities, debt retirement methods, investing in stocks and bonds. Time permitting, more advanced topics will also be covered.

Course Learning Outcomes

The student learning outcomes are what student would be able to know and to do on the completion of this course. In details are:

1. Understand the fundamental concepts and methods of financial mathematics, e.g. conversion of rates, pension calculation, analysis of investment return, etc.

2. Be able to develop some skills in working with the fundamental concepts and theorems.

3. Apply quantitative analysis to deal with financial problems.

Relationship to Other Courses

The prerequisites for this course are Calculus, linear algebra and probability theory and mathematical statistics

Textbook and Reading Lists

Textbook:

Shengwang Meng, Financial Mathematics(3th edition).China Renmin University Press.2011.

Suggested reading lists:

John C. Hull, Options, Futures and Other Derivatives (8th edition). Pearson Education, 2009.

Course Assessment

Course Schedule