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MATH 363 — Introductory Concepts in Financial Mathematics-Prerequisite

Mathematics · University of Ghana

MATH 223, STAT 221 This course introduces the basic methods applied in financial mathematics. We will discuss probability functions, stochastic processes, random walks and martingales; Ito's lemma and stochastic calculus. Students will understand the stochastic differential equations for a geometric Brownian motion process. We will study mean reverting models such as the Ornstein- Uhlenbeck process, as well as stochastic volatility models such as the Heston Model. Stochastic models for stock pricing are also discussed; we study a binomial option pricing model, the Black-Scholes model and the capital asset pricing model.

Credits
3
Level
Level 300
Semester
Semester One

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Course details from University of Ghana Volume 3 Handbook for the Bachelor's Degree: Course Descriptions for Programmes in the Sciences (2017).