MATH 435: Mathematics of Finance

Course Description

Full Course Title: Introduction to Mathematics of Finance
This introductory course is designed for students aiming to pursue careers in finance, actuarial science, and economics. It focuses on the fundamentals of options pricing and risk management, exploring the use and valuation of various types of options, including call and put options. Students will learn how these options can be employed alongside underlying assets for risk management purposes. The course covers key pricing models, such as binomial trees and the Black-Scholes Formula, to approximate and determine the prices of European and American call and put options. If time allows, the course will also delve into the significance of Option Greeks, optimal portfolio theory, and other risk management strategies for creating hedged asset portfolios. (OC).