An Undergraduate Introduction to Financial Mathematics by J. Robert BuchananThis textbook provides an introduction to financial mathematics and financial engineering for undergraduate students who have completed a three- or four-semester sequence of calculus courses.It introduces the Theory of Interest, discrete and continuous random variables and probability, stochastic processes, linear programming, the Fundamental Theorem of Finance, option pricing, hedging, and portfolio optimization. The reader progresses from a solid grounding in multi-variable calculus through a derivation of the Black-Scholes equation, its solution, properties, and applications.
Introduction to Financial Mathematics Tutorials
This module provides a solid mathematical introduction to the subject of Compound Interest Theory and its application to the analysis of a wide variety of complex financial problems, including those associated with mortgage and commercial loans, the valuation of securities, consumer credit transactions, and the appraisal of investment projects. The investment and risk characteristics of the standard asset classes available for investment purposes are also briefly considered, as is the topic of asset-liability matching. The module also provides introductions to the term structure of interest rates, simple stochastic interest rate models, the concept of no-arbitrage pricing of forward contracts, and behavioural economics. Time value of money. Rate of interest, rate of discount, and force of interest. Accumulated values and discounted values. Accumulation and discounting of a possibly infinite cash flow to a given time, where both the rate of cash flow and the force of interest may be time-varying.
About Me. MATH Introduction to Financial Mathematics Lecturer in Financial Mathematics probably helpful to print the notes off before the lecture but.
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In this series of 30 short tutorials, we learn the basics of mathematical finance., Second edition. Last day to drop a course without a grade being reported.
This is an introductory course on the mathematics for investment, hedging, portfolio management, asset pricing and financial derivatives in discrete-time financial markets. We discuss arbitrage, completeness, risk-neutral pricing and utility maximization, and maybe other topics. We prove the fundamental theorem of asset pricing and the hedging duality theorems in discrete time, and also study convex duality in utility maximization. In addition, programming exercises will be given in Python 2. For any question, the assistants of the financial mathematics group will be available for you during the assistant hours, see praesenz. Before Wednesday at