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Faculty of Science Mathematics & Statistics
Faculty of Science

Mathematics & Statistics

MATH 3FM3, Fall 2017

MATHEMATICS OF FINANCE

Math 3FM3  is the perfect place  to start learning about the rigorous mathematical formalism underpinning the modern theory of Mathematical Finance. In this class, we will focus on financial models in discrete time and learn about options and forwards, efficient markets, no arbitrage pricing, the binomial asset pricing model, portfolio strategies, stochastic processes, conditional expectation, martingales, optimal portfolio selection, and exotic options. After this course, you will have a clear understanding of the key concepts of modern Mathematical Finance and you will be exceptionally well prepared to embark onto the next stage --- the continuous time modeling paradigm taught in the Math 4FM3 course. Together, 3FM3 and 4FM3 prepare students for a career  working in a research department of a financial institution developing and working with models of financial risk. They also cover the material of the Society of Actuaries MFE exam. 

INSTRUCTOR:  tba

Course Website

Calendar Description
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 term
Prerequisite(s): One of ISCI 2A18 A/B, MATH 2A03, 2X03; and STATS 2D03
Antirequisite(s): MATH 4K03


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McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
McMaster University

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.27034
Undergrad Email Inquiries:
undergrad@math.mcmaster.ca

McMaster University - Faculty of Science

Mailing Address

Department of Mathematics & Statistics
McMaster University

Hamilton Hall, Room 218
1280 Main Street West
Hamilton, Ontario, Canada
L8S 4K1

Contact Information

Office Hours:
8:30 a.m. - 12:00 p.m.
1:00 p.m. - 4:30 p.m.
Telephone Inquiries:
+1 (905) 525-9140 ext.27034
Undergrad Email Inquiries:
undergrad@math.mcmaster.ca