1.0:  COURSE PURPOSE

The course is designed to equip the learner with the basic concepts of application of mathematics to finance as a foundation in mathematical finance..

 

2.0 Learning outcomes

By the end of the course the learner should be able to:

1.      define the concept of interest rates, present and future value analysis and the risk-free assets;

2.      define financial derivatives and options;

3.      develop and derive a simple market model with its assumptions;

4.      examine the risky asset concepts and its dynamics;

5.      develop the Arbitrage theorem in option pricing and one step Binomial model;

6.      work out problems of portfolio mathematics


FMA 306_Mathematics of Finance.docFMA 306_Mathematics of Finance.doc