The Mathematics of Option Pricing

Credit Hours: 
3

Bonds, stock markets, derivatives, arbitrage, and binomial tree models for stocks and options, Black-Scholes formula for options pricing, hedging. Computational methods will be incorporated.

Prerequisites: 
[(MATH 2270 or MATH 2500) and MATH 3000] or MATH 3510 or MATH 3510H or permission of department
Level: