FACULTY OF ARTS AND SCIENCES

Department of Mathematics

MATH 321 | Course Introduction and Application Information

Course Name
Introduction fo Mathematical Finance
Code
Semester
Theory
(hour/week)
Application/Lab
(hour/week)
Local Credits
ECTS
MATH 321
Fall/Spring
3
0
3
5

Prerequisites
None
Course Language
English
Course Type
Elective
Course Level
-
Mode of Delivery face to face
Teaching Methods and Techniques of the Course -
Course Coordinator -
Course Lecturer(s)
Assistant(s)
Course Objectives The aim of this course is to teach students the basic concepts and mathematical formulations of economic analysis and actuarial.
Learning Outcomes The students who succeeded in this course;
  • will be able to analyze the basic concepts of economic analysis and actuaries.
  • will be able to develop mathematical formulations and models.
  • will be able to define the basic concepts of actuarial.
  • will be able to calculate interest rates.
  • will be able to apply mathematical modeling methods.
Course Description In this course, students will learn about interest rates and income. In the course, when the arbitrage and its applications and economic evaluations are insufficient, the lessons will be taught. Mathematical modeling methods in finance are also among the topics of the course.

 



Course Category

Core Courses
Major Area Courses
Supportive Courses
X
Media and Management Skills Courses
Transferable Skill Courses

 

WEEKLY SUBJECTS AND RELATED PREPARATION STUDIES

Week Subjects Related Preparation
1 An Introduction to options and markets ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition,2008. ISBN:13- 97801350009949 Chapter 1
2 Derivatives and some terminologies ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN:13- 97801350009949 Chapter 14
3 Options ''Options, Futures, and other Derivatives’’, Prentice Hall, 2008. ISBN:13- 97801350009949 Chapter 15
4 Forward price, Put-Call parity ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition,2008. ISBN:13- 97801350009949 Chapter 16
5 Comparing Options With Respect to Style, Maturity, and Strike ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN:13- 97801350009949 Chapter 17
6 Binomial tree ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition,2008. ISBN:13- 97801350009949 Chapter 19
7 Midterm
8 Binomial tree ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN:13- 97801350009949 Chapter 19
9 Introduction to probability theory ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN13:97801350009949 Chapter 13
10 Lognormal distributions and stochastic processes ''Options, Futures, and other Derivatives’’, Prentice Hall ,7th edition, 2008. ISBN13:97801350009949 Chapter 13
11 Brownian motion ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN:13- 97801350009949 Chapter 12
12 Ito’s Lemma ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition, 2008. ISBN:13- 97801350009949 Chapter 12
13 Black-Scholes Equation ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition,2008. ISBN:13- 97801350009949 Chapter 13
14 Cash or Nothing and Gap options ''Options, Futures, and other Derivatives’’, Prentice Hall, 7th edition,2008. ISBN13:97801350009949 Chapter 14
15 Semester Review
16 Final Exam

 

Course Notes/Textbooks

‘’Options, Futures, and other Derivatives’’, Prentice Hall,  7th edition,2008.

ISBN:13- 97801350009949

Suggested Readings/Materials

 

EVALUATION SYSTEM

Semester Activities Number Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques
Portfolio
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm
2
60
Final Exam
1
40
Total

Weighting of Semester Activities on the Final Grade
2
60
Weighting of End-of-Semester Activities on the Final Grade
1
40
Total

ECTS / WORKLOAD TABLE

Semester Activities Number Duration (Hours) Workload
Theoretical Course Hours
(Including exam week: 16 x total hours)
16
3
48
Laboratory / Application Hours
(Including exam week: '.16.' x total hours)
16
0
Study Hours Out of Class
14
3
42
Field Work
0
Quizzes / Studio Critiques
0
Portfolio
0
Homework / Assignments
0
Presentation / Jury
0
Project
0
Seminar / Workshop
0
Oral Exam
0
Midterms
2
20
40
Final Exam
1
20
20
    Total
150

 

COURSE LEARNING OUTCOMES AND PROGRAM QUALIFICATIONS RELATIONSHIP

#
Program Competencies/Outcomes
* Contribution Level
1
2
3
4
5
1

To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics.

2

To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics.

3

To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials.

X
4

To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning.

X
5

To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals.

6

To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project.

X
7

To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge.

8

To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field.

9

To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security.

10

To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking.

11

To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language.

12

To be able to speak a second foreign language at a medium level of fluency efficiently.

13

To be able to relate the knowledge accumulated throughout the human history to their field of expertise.

*1 Lowest, 2 Low, 3 Average, 4 High, 5 Highest

 


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