Financial Mathematics (GE, Pré Master, S2)

Professeur’s Name: Zoubida SAMLAL

1.1 Course Description/Learning Goals

This course introduces the students to the concepts in financial mathematics,
a field of mathematics that uses mathematical and numerical models to
make educated decisions in the face of uncertainty in the financial markets.

Learning Objectives:
The primary learning goals of the course are to:
1. Introduce the concepts of financial mathematics;
2. Provide an introduction to financial instruments related to financial
mathematics;
3. Introduce students to the use of mathematical models for financial
products;
4. Develop student abilities to create, derive, and apply mathematical
models.

1.2 Break down of the learning Hours

Volume horaire (VH)

Activités

Composante(s) du module Prat i ques

Cours TD TP (Travaux de
Travail Evaluatio VH
terrain, Projets,
perso n des global
nnel connaiss
Stages, …),
ances
Autres /préciser)

Financial Mathematic 15h 21h 4h 40h

1.3 Description of Content

Week # Topic
1 Understanding The conepts of Cash-Flows, Interest rates (
Simple & Compounded
2 Present Value versus Future Value of Lump Sum + TD/TP
3 Present Value versus Future Value of Cash Flow Stream
4 TD/TP ( Application Case)
5&6 Present Value versus Future Value of Annuities ( Ordinary,
Due, Constant & Growing)
7 Midterm Exam
Present Value Perpetuity
8 Amortization Schedule ( Lump sum, Annuity and Sinking
Fund)+ TD/TP
9-10 Valuation Bonds , YTM, Durantion & Convexity + TD/TP
11 Valuation of Stock + TD/TP
12 Risk & Return + TD/TP
13 TD/TP ( Application Case)

1.4 Grade / Evaluation Break Drown

Evaluation Criteria Weight %

Final Exam 40%

Midterm Exam 30%

Assignment 15%

Attendance & Participation 15%

Reference:

Financial Mathematics: A Practical Guide for Actuaries and Other Business

Professionals. Chris Ruckman and Joe Francis. Publisher: BPP Professional
Education; 2nd edition (October 2005). ISBN: 0975313649