Financial Mathematics I & II: Course Outline For Financial Mathematics I (MAT 643)
Mathematical finance will derive and extend the mathematical or numerical models without necessarily establishing a link to financial theory, taking observed market prices as input.
- Discrete-time models,
- Riskless asset pricing,
- Asset pricing under risk,
- Complete and incomplete markets.
- Introduction to options and risk-neutral pricing,
- Option strategies,
- Introduction to financial derivatives,
- Portfolio optimization,
- Capital Asset Pricing Model (CAPM),
- Efficient frontier.