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MATH 5370 3.0MW (Winter 2015)
Financial Mathematics for Teachers - Course outline


Description:

The world of finance is increasingly mathematical. This potentially affects a broad spectrum of secondary students, from those actually enrolled in business courses or mathematics courses with a financial component, to those taking other 12U courses who will enter university programs in finance or financial mathematics. We'll examine a broad range of financial applications of mathematics, focussing particularly on those that involve probability. These include insurance, annuities, mortgages, stocks, bonds, options, futures, and derivative securities. We'll discuss the uses of derivatives (eg risk management) and also their misuses (eg what is the connection between the mathematical models of credit derivatives and the financial crisis). In many ways, the mathematization of finance is a consequence of relatively recent discoveries about how to hedge financial risks. We'll study both hedging, and the mathematics ("stochastic calculus") that underlies it.

Prerequisites:

None. I will assume basic knowledge about probability, and familiarity with Excel.
There are no Course Credit Exclusions.

Course Webpage:

www.math.yorku.ca/~salt/courses/5370w15/5370.html

Instructor/Contact Information:

Tom Salisbury

Course meetings:

Thursdays 6-9pm in Vari Hall 1005 (room change).

Office hours:

TBD

Text:

Instead of a textbook, we will use readings from a variety of sources, and will make extensive use of Excel.

Grading: