After reviewing tools from probability, statistics, and elementary differential and partial differential equations, models of hedging, arbitrage, puts, calls, the design of portfolios, the derivation and solution of the Black-Scholes and other equations (Bachelier, Ito’s Lemma) are amplified and discussed. Focus is on mathematical properties and relations between concepts of financial and currency market instruments in investment and economic activities.
Code:
BA4021
Name:
MATHEMATICS OF FINANCE
Discipline:
BA (Business)
Type:
Regular
Level:
Undergraduate
Credits:
4
Can be taken twice for credit?:
No
Pre-requisites:
(MA1020 OR MA1020CCM) AND (MA1030 OR MA1030CCM)
Co-requisites:
None