Financial Mathematics

a. Compound Interest and Investments:

● Understanding compound interest: formulas, calculations.
● Time value of money: present value, future value.
● Compound interest in various investment vehicles: savings accounts, bonds,
stocks.
● Strategies for maximizing returns: diversification, risk tolerance assessment.
● Tools for financial planning: investment calculators, Excel spreadsheets.

b. Risk Management and Insurance:

● Fundamentals of risk management: identification, assessment, mitigation.
● Types of risks: market risk, credit risk, operational risk.
● Insurance products and principles: life insurance, health insurance, property
insurance.
● Actuarial science: mortality tables, risk modeling.
● Role of insurance in personal finance and business continuity planning.

c. Portfolio Optimization:
● Modern portfolio theory (MPT) and efficient frontier.
● Asset allocation strategies: risk-return tradeoff, diversification.
● Capital Asset Pricing Model (CAPM) and beta coefficient.
● Factor investing: value, growth, momentum.
● Rebalancing and monitoring portfolio performance.

d. Option Pricing and Hedging:

● Basics of options: call options, put options, option contracts.
● Option pricing models: Black-Scholes model, binomial option pricing model.
● Greeks: delta, gamma, theta, vega, rho.
● Option strategies: covered calls, protective puts, straddles.
● Hedging techniques using options: delta hedging, gamma hedging.

e. Financial Derivatives:
● Introduction to derivatives: forwards, futures, swaps.
● Pricing and valuation of derivatives contracts.
● Role of derivatives in risk management and speculation.
● Exchange-traded derivatives vs. over-the-counter (OTC) derivatives.
● Regulation and oversight of derivatives markets.

f. Actuarial Mathematics:
● Actuarial principles and methodologies.
● Life insurance mathematics: mortality tables, life expectancy.
● Annuities and pension plans: present value, future value calculations.
● Health insurance mathematics: morbidity tables, medical cost projections.
 ● Regulatory requirements and professional standards for actuaries.

g. Behavioral Finance:
● Psychological biases in financial decision making: loss aversion, overconfidence,
herd behavior.
● Prospect theory and framing effects.
● Behavioral finance applications in investment management.
● Challenges to the efficient market hypothesis.
● Strategies for overcoming behavioral biases in personal finance and investing.