MTL732
| MTL732 | |
|---|---|
| Financial Mathematics | |
| Credits | 3 |
| Structure | 3-0-0 |
| Pre-requisites | MTL103/MTL508 |
| Overlaps | MCL363/MSL873 |
MTL732 : Financial Mathematics
[edit]Financial markets, Interest computation, value, growth and discount factors, derivative products, basic option theory: single and multi-period binomial pricing models, Cox-Ross-Rubinstein (CRR) model, volatility, Black-Scholes formula for option pricing as a limit of CRR model, Greeks and hedging, Mean-Variance portfolio theory: Markowitz model, Capital Asset Pricing Model (CAPM), factor models, interest rates and interest rate derivatives, Binomial tree models.