2020-2021 Undergraduate Academic Catalog 
    
    Dec 01, 2021  
2020-2021 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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AC 3303 - AS Lab II: Applications of Financial Mathematics

3 lecture hours 0 lab hours 3 credits
Course Description
This course is designed to provide students with a comprehensive understanding of the core mathematical concepts included on the syllabus for the actuarial exams on financial mathematics (Exam FM offered by the Society of Actuaries and Exam 2 offered by the Causality Actuarial Society). It will review and/or cover topics such as time value of money, annuities, loans, bonds, cash flow and portfolios, immunization, interest rate swaps, and determinants of interest rates. Substantial focus will also be placed on developing efficient problem-solving skills.  (prereq: MA 390 )
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
  • Demonstrate mastery of the fundamental concepts of financial mathematics
  • Demonstrate an ability to efficiently apply these concepts in calculating present and accumulated values for various streams of cash flows as a basis for use in: reserving, valuation, pricing, asset/liability management, investment income, capital budgeting, and valuing contingent cash flows
  • Successfully complete the actuarial exam

Prerequisites by Topic
  • General cash flows and portfolios
  • Immunization
  • General derivatives
  • Options
  • Hedging and investment strategies
  • Forwards and futures
  • Swaps

Course Topics
  • Time value of money
  • Annuities/cash flows with non-contingent payments
  • Loans
  • Bonds
  • General cash flows and portfolios
  • Immunization
  • Interest rate swaps
  • Determinants of interest rates

Coordinator
Dr. Yvonne Yaz



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