FM 202. Financial Mathematics II

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Continuously payable cash flows. Indexation of payments. Stochastic interest rate models. Term structure of interest rates. Forward contracts.

Main textbooks:

J. McCutcheon, W. Scott, An Introduction to the Mathematics of Finance, Heinemann, 1986.

N. Bowers, H. Gerber, J. Hickman, D. Jones, C. Nesbitt, Actuarial Mathematics, 2nd ed., Society of Actuaries, 1997.

 

Auxiliary textbooks:

 

S. Kellison, The Theory of Interest, 2nd ed. Irwin, 1991.

M. Butcher, C. Nesbitt, Mathematics of Compound Interest, Ulrich's Books, 1971.

Credit : 3

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