Introduction to basic financial mathematics focusing on equivalent rates of interest and their use in discounted cashflow analysis. Topics include: annuities, loans, projects, bonds, duration and convexity, the yield curve, and the fundamentals of financial derivatives such as European call and put options. Prerequisite: C or better in MATH 160 or equivalent. Four hours per week.
MATH 216 STATISTICAL THINKING (Spring 2020)
Descriptive and inferential analysis of data, emphasizing appropriate assumptions, computer use and interpretation. Parametric and non-parametric methods are compared and contrasted. Includes a weekly laboratory. May not receive credit for more than one: MATH 150, 155, 213 or 216. Prerequisite or Corequisite: C or better or concurrent enrollment in MATH 160, 198, 201 or similar calculus experience. Four hours per week.
MATH 415 ACTUARIAL & FINANCIAL MODELS (Spring 2020)
Introduction to models of survival, individual life insurance and life annuities emphasizing the traditional actuarial functions of determining premiums and reserves from a stochastic point of view. Topics include multiple life theory, models with expenses, stochastic process, and the use of binomial models, geometric Brownian motion and simulation in the study of option pricing. Prerequisites: C or better in MATH 215, 413. Four hours per week.