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.