MATH 356 - Introduction to Mathematical Finance I

★ 3 (fi 6)(FIRST, 3-0-0)

Simple Market Model: one-step binomial model, basic notions and assumptions. Risk-Free Assets: simple interest, zero-coupon bonds, money market account. Risky Assets: dynamic of stock prices, binomial tree model, trinomial tree model. Discrete time market model: stock and money market model, extended models. Portfolio management: risk, two securities, capital asset pricing model. Prerequisite: MATH 253 and one of STAT 265 or MATH 281, or consent of the Department.