Introduction to Financial Mathematics

(3 Credit Hours) · Undergraduate

The course serves as a preparation for first actuarial exam in financial math- ematics, known as Exam FM or Exam 2. The first part of the course deals with pricing of fixed income securities, such as bonds and annuities. The second part of the course can serve as an introduction to deriva- tive securities such as options and futures. Although the amount of material for both parts is almost the same, exam FM devotes usually about 2/3 of its questions to Part1. Therefore, about 2/3 of the course is devoted to Part 1. Topics covered: Interest rates, Annuities, Loans and Bonds, Forwards, Options, Hedging, and Swaps