Introduction to Financial Mathematics

The aim of this course is to introduce students to financial derivatives and the mathematics of finance.

The course starts with basic financial derivatives (futures, options, swaps) and then introduces the probabilistic modeling and study of financial markets. Topics covered include: no-arbitrage theory and the fundamental theorems of asset pricing, risk-neutral pricing of derivatives, discrete-time models, the binomial asset pricing model, American and exotic derivatives and the Black-Scholes model.

The final grade of the course consists of the following components:

- Written exam (70%)

- Assignments (30%)

Final grade calculation: (0.7 * written exam) + (0.3 * assignments)

Resit/ Repair opportunities:

In case of an insufficient result, repair opportunities may be offered in accordance with TER Implementation Regulations Art 5, sub 5., for:

- Written exam: written resit

- Assignments: oral exam on the material of the assignments

Disclaimer: information may change depending on unforeseen circumstances or measures (see: TER Art 29, sub 4).