Mathematical Finance

Mathematical Finance
The binomial asset pricing model (discrete probability). Martingales, pricing of derivative securities, random walk in financial models, random interest rates.
 Hours3.0 Credit, 3.0 Lecture, 0.0 Lab
 PrerequisitesMATH 431
 TaughtWinter odd years
Course Outcomes

The binomial asset pricing model (discrete probability)

The minimal expectation for this course is that students learn about mathematical finance in the context of discrete time and finite state-spaces. It is therefore not required that students be taught about Brownian motion, the Black-Scholes model, etc. For more detailed information visit the Math 435 Wiki page.