Nov 23, 2024  
2014-2015 Catalog 
    
Catalog Navigation
  Publication Home
  About Harvey Mudd College
  Introduction
  Student Life
  Admission & Financial Aid
  Academic Program
  HMC Common Core
  Department of Biology
  Department of Chemistry
  Department of Computer Science
  Department of Engineering
  Department of Humanities, Social Sciences, and the Arts
  Department of Mathematics
  Department of Physics
  Interdisciplinary Programs
  Other Programs
  Study Abroad
  Programs of Study
  Course Descriptions
  Academic Regulations
  General Regulations
  Faculty
  Senior Administration
  Academic Calendar 2014-2015
  Archived Catalogs
HELP
2014-2015 Catalog [ARCHIVED PUBLICATION] Use the dropdown above to select the current catalog.

MATH109 CM - Introduction to the Mathematics of Finance

Credit(s): 3

Aksoy (CMC). This is a first course in Mathematical Finance sequence. This course introduces the concepts of arbitrage and risk-neutral pricing within the context of single- and multi-period financial models. Key elements of stochastic calculus such as Markov processes, martingales, filtration, and stopping times will be developed within this context. Pricing by replication is studied in a multi-period binomial model. Within this model, the replicating strategies for European and American options are determined. (Alternate years)

Prerequisite(s): MATH065 HM