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

Announcement

The Raider Return

Milwaukee School of Engineering

Connect With MSOE

AC 3303 - AS Lab II: Applications of Financial Mathematics