MFM 702 / Risk and Financial Markets

3 unit(s)

Prerequisite(s): Must be enrolled in MFM program.

Practical overview of global financial markets and securities with an emphasis on understanding the key roles played by mathematicians and the modeling work they use in pricing, hedging and risk assessment. Practical skills are developed following industry practices and requirements. Topics include: Introduction to Markets, Market Data, Stochastic Models, Equity Options, Hedging, Black-Scholes- Merton model, Greeks, Model Shortcomings, Foreign Exchange Options, Fixed Income Instruments, Value at Risk and other practical Risk Measurement and Management Issues and Techniques.