FINC360

This course will provide a friendly introduction to mathematical finance by focusing on the problem of pricing derivative securities within the relatively simple framework of the binomial asset-pricing model. It should provide the student with a solid understanding of fundamental concepts from math finance such as arbitrage, option pricing, risk-neutral measures, hedging, and utility optimization. At the same time, various concepts from probability will be developed, including martingales, Markov processes, and random walks. This course is recommended for any math or business/finance student who is considering work in quantitative finance, or who is simply curious about how rigorous mathematics can abe applied to real-world financial problems. This course is cross-listed as MATH 360.