Dec 03, 2024  
2024-2025 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
  Hixon Center for Climate and the Environment
  Interdisciplinary Majors
  Other Programs
  Study Abroad
  Programs of Study
  Course Descriptions
  Academic Policies
  General Policies
  Faculty
  Senior Administration
  Academic Calendar 2024-2025
  Archived Catalogs
HELP
2024-2025 Catalog

MATH109 CM - Introduction to the Mathematics of Finance

Credit(s): 3

Instructor(s): Staff (CMC)

Offered: Alternate years

Description: 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.

Prerequisite(s): MATH073 HM  and MATH082 HM