MATH 3FM3 - Mathematics of Finance

3 unit(s)

Introduction to finance in discrete time: Options and forwards, efficient markets and the no arbitrage condition, binomial asset pricing model, portfolio strategies, stochastic processes, conditional expectation, martingales, optimal portfolio selection, exotic options.
Three lectures, one tutorial; one term
Prerequisite(s): One of ISCI 2A18 A/B, MATH 2X03; and STATS 2D03
Antirequisite(s): MATH 4K03