Mathematical Theory of Interest

Course Type: 
MTH
Code: 
3120
Level: 
Undergraduate
Credit Hours: 
4
Schedule Type: 
Lecture
Description: 

Theory of financial transactions involving interests, annuities, derivatives, options and futures. Compound and simple rates of interest and discount, force of interest, annuity certain and annuity due, mortgage amortizations, evaluation of bonds, durations, asset and liability matching, cash flow analysis, short sales of stocks and options, arbitrage, and an introduction to risk management and immunization. Covers the SoA/CAS syllabus for the actuarial exam FM/2.

Prerequisites: 

Undergraduate level MTH 2310 Minimum Grade of D