QBUS - 480. Mathematics of Finance

3 credit(s)
This course builds on the knowledge base contained in previous courses taken by actuarial students. The goal is to reinforce understanding of the fundamental concepts of financial mathematics, and how those concepts are applied in calculating present and accumulated values for various streams of cash flows as a basis for future use. Students will review basic financial instruments and expand their knowledge base to more modern financial analysis using yield curves, spot rates and immunization. Finally students will be introduced to the concept of risk management and understand how principles such as derivatives, forwards, futures, short and long positions, call and put options, spreads, collars, hedging, arbitrage, and swaps affect a firm’s risk.

Prerequisite(s): FINC 201, FINC 315 and MATH 120, or permission of instructor.
Equivalent: (Same as MATH 480).
Attribute: (ATTR: ARTS, BUS, MHUL)