Models for Financial Economics

3 credits · Undergraduate Programs

Survey of financial derivatives, valuation of derivatives using binomial trees, Black-Scholes-Merton equation, dynamic hedging, Brownian motion and Ito's Lemma. Prerequisite(s): Actuarial Science 325 and Statistics 321. Antirequisite(s): Credit for Actuarial Science 515 and 539.04 will not be allowed.