Mathematics of Finance & Risk Management (Financial Mathematics) submajor


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Mathematics MajorThe department offers many different programs with varying requirements: Pure Math; Mathematical Sciences; Actuarial Mathematics; Mathematics of Finance and Risk Management; Honors; and Teaching Certification

Effective Winter 2014

May be elected as a departmental major

Prerequisites to the Major

Most programs require completion of one of the sequences ending with MATH 215-217, 256-217, 285-217, or 395-396. A working knowledge of a high-level computer language such as C++ or a computer algebra system (such as Maple or Mathematica), at a level equivalent to completion of a course of three or more credits, and eight credits of PHYSICS, preferably PHYSICS 140/141 and 240/241, are recommended for all programs and required for some. (A grade of C- or better is strongly suggested for MATH 217.)

Major GPA Calculation

For purposes of calculating grade point average, the term "field of the major" means the following:

  1. All MATH courses.
  2. All courses used to meet requirements for the major.
  3. All required cognate courses (if any).
  4.  All mandatory prerequisites.
  5. EECS 183
  6. ECON 101 and ECON 102 (actuarial mathematics submajor only).

Requirements for the Major

A student considering a major in Mathematics should consult a mathematics department advisor in the Undergraduate Mathematics Office as early as possible and certainly by the first term of the sophomore year. The department offers many different submajors with varying requirements; failure to meet some of these at the intended time may delay completion of the program and graduation. A plan for the major must be designed with and approved by a department advisor.

 

Effective Winter 2014; retroactive to Fall 2013

The program in Mathematics of Finance and Risk Management (or Financial Mathematics for short) is designed to provide a broad education in the quantitative aspects of risk management and finance. Financial instruments which are engineered today require sophisticated mathematical techniques for their valuation. These techniques come from the fields of probability, statistics and differential equations.

Prerequisites: MATH 215&217, 255&217, 285&217 or MATH 295&296. Each student must also complete: ECON 101 and 102 and EECS 183 all elected on a graded basis.  The grade for ECON 101, ECON 102, and EECS 183 will be included in the major GPA.

  1. Four basic courses (one from each of the following four groups), completed with a grade of at least C-:
    1. Differential Equations: MATH 216, 256, 286, or 316
    2.  Probability: MATH 425
    3. Statistics: STATS 426
    4.  Finance: MATH 423
  2. Four special courses for Financial Mathematics:
    MATH 451, MATH 472 (or 471), MATH 525, MATH 526.
  3. Two additional courses in areas relating toinancial Mathematics approved by an advisor.

Actuarial Mathematics and Mathematics of Finance & Risk Management (W'10-F'13) +

Effective Winter 2010-Fall 2013

Effective Winter 2014, this subMajor was split into the Actuarial Mathematics subMajor and the Mathematics of Finance and Risk Management ( Financial Mathematics )

The Actuarial Mathematics Program is designed to provide broad training in the basic mathematics underlying the operations of private and social insurance and employee benefit plans. The courses are organized to assist the student to prepare for several of the examinations of the Casualty Actuarial Society and the Society of Actuaries. Non-credit review classes for some of the professional actuarial examinations are organized each term; ask your actuarial advisor about the time and place of these classes. It is strongly recommended that some of these exams be passed before graduation. Summer internships are an important component of the educational program and students are strongly encouraged to seek an internship no later than the conclusion of their junior year. Students are encouraged to take either MATH 422 or 427 to satisfy their upper-level writing requirement.

The program in Mathematics of Finance and Risk Management (or Financial Mathematics for short) is designed to provide a broad education in the quantitative aspects of risk management and finance. Financial instruments which are engineered today require sophisticated mathematical techniques for their valuation. These techniques come from the fields of probability, statistics and differential equations.

Prerequisites: MATH 215&217, 255&217, 285&217 or MATH 295&296. Each student must also complete: ECON 101 and 102 and EECS 183 all elected on a graded basis.  The grade for ECON 101, ECON 102, and EECS 183 will be included in the major GPA.

  1. Four basic courses (one from each of the following four groups), completed with a grade of at least C-:
    1. Differential Equations: MATH 216, 256, 286, or 316
    2.  Probability: MATH 425
    3. Statistics: STATS 426
    4.  Finance: MATH 423
  2. Four special courses for Actuarial Mathematics:
    MATH 424, MATH 520 and 521 (or 522), and MATH 523.
    Four special courses for Financial Mathematics:
    MATH 451, MATH 472 (or 471), MATH 525, MATH 526.
  3. Two additional courses in areas relating to Actuarial or Financial Mathematics approved by an advisor.

Actuarial Math. and Math. of Finance and Risk Management (Winter 2007-Fall 2009) +

Effective Winter 2007 through Fall 2009 

The Actuarial Mathematics Program is designed to provide broad training in the basic mathematics underlying the operations of private and social insurance and employee benefit plans. The courses are organized to assist the student to prepare for several of the examinations of the Casualty Actuarial Society and the Society of Actuaries. Non-credit review classes for some of the professional actuarial examinations are organized each term; ask your actuarial advisor about the time and place of these classes. It is strongly recommended that some of these exams be passed before graduation. Summer internships are an important component of the educational program and students are strongly encouraged to seek an internship no later than the conclusion of their junior year. Students are encouraged to take either Math 422 or 427 to satisfy their upper-level writing requirement.

The program in Mathematics of Finance and Risk Management (or Financial Mathematics for short) is designed to provide a broad education in the quantitative aspects of risk management and finance. Financial instruments which are engineered today require sophisticated mathematical techniques for their valuation. These techniques come from the fields of probability, statistics and differential equations.

Prerequisites: MATH 215-217, 255-217, 285-217 or MATH 295-296. Each student must also complete: ECON 101 and 102, plus EECS 183 or demonstrate a comparable working knowledge of a high-level computer language.

  1. Four basic courses (one from each of the following four groups), completed with a grade of at least C-:
    1. Differential Equations: MATH 216, 256, 286, or 316
    2.  Probability: MATH 425
    3. Statistics: STATS 426
    4.  Finance: MATH 423
  2. Four special courses for Actuarial Mathematics: MATH 424, MATH 520 and 521 (or 522), and MATH 523.

    Four special courses for Financial Mathematics: MATH 472 (or 471), MATH 525, MATH 526, and ECON 435.
  3. Two additional courses in areas relating to Actuarial or Financial Mathematics approved by an advisor.

Actuarial Mathematics and Mathematics of Finance and Risk Management submajor (Fall 2005 through Fall 2006) +

Effective Fall 2005 through Fall 2006 

Prerequisites: One of the following sequences: Math 215-217, 255-217, 285-217, or 395-296. Students who have completed one of the sequences MATH 255-256 or MATH 285-286 may substitute MATH 513 for MATH 217. In addition, each student must complete: ACC 471; an introductory course in Economics; and acquire working knowledge of a high-level computer language (e.g., FORTRAN, C or C++) at a level equivalent to completion of EECS 183.

The major must include at least ten courses: (a) five basic courses; (b) three special actuarial or financial mathematics courses, and (c) two courses in related areas as described below,

  1. Five basic courses (one from each of the following five groups), completed with a grade of at least C-:
    1. Differential Equations: MATH 216, 256, 286, or 316
    2. Probability: MATH 425 or 525
    3. Analysis: MATH 351, 354, 451, or 524
    4. Statistics: STATS 426
    5. Risk Analysis: MATH 523
  2. Three special courses for actuarial mathematics: MATH 424 and 520, and one of MATH 521 or 522.
    Three special courses for financial mathematics: MATH 423, ECON 435 and MATH 472 or 471. (MATH 472 is preferred).
  3. Two additional courses in areas relating to Actuarial or Financial Mathematics approved by an advisor.

Actuarial Math. & Math. of Finance and Risk Management (Fall 2004-Summer 2005) +

Effective Fall 2004-Summer 2005)

Additional prerequisites: Each student must complete ACC 471 and an introductory course in Economics, and acquire a working knowledge of a high-level computer language at a level equivalent to completion of EECS 183.

a.   Five basic courses (one from each of the following five groups), completed with a grade of at least C-:

1.   Differential Equations: MATH 216, 256, 286, or 316

2.   Probability: MATH 425 or 525

3.   Analysis: MATH 351, 354, 451, or 524

4.   Statistics: STATS 426

5.   Risk Analysis: MATH 523

b.   Three special courses for actuarial mathematics: MATH 424 and 520, and one of MATH 521 or 522.

Three special courses for financial mathematics: MATH 423, ECON 435 and MATH 472 or 471. (MATH 472 is preferred).

c.   Two additional courses in areas relating to Actuarial or Financial Mathematics approved by an advisor.

ActuarialMathematics/MathematicsofFinance&RiskManagement (through Summer 2004) +

Effective through Summer 2004 

(Students should consult the pamphlet Undergraduate Programs of the Department of Mathematics for its program requirements, which take precedence over the descriptions in this Bulletin.)

Additional prerequisites: Each student must complete ACC 471 and an introductory course in Economics, and acquire a working knowledge of a high-level computer language at a level equivalent to completion of EECS 183.

  1. Five basic courses (one from each of the following five groups):

    1. Differential Equations: MATH 216, 256, 286, or 316

    2. Probability: MATH 425 or 525

    3. Analysis: MATH 351, 354, 451, or 524

    4. Statistics: STATS 426

    5. Risk Analysis: MATH 523

  2. Three special courses for actuarial mathematics: MATH 424 and 520, and one of MATH 521 or 522.

    Three special courses for financial mathematics: MATH 423, ECON 435 and MATH 472 or 471. (MATH 472 is preferred).

  3. Two additional courses in areas relating to Actuarial or Financial Mathematics approved by an advisor.

 


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