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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:

- 30% Assignments
- 30% Mathematics project - research a topic related to the course
material (evaluation: class presentation, report)
- 30% Pedagogy project - reflect on how some course topic could be
incorporated into your teaching practice
(evaluation: class presentation, report)
- 10% Class participation