Course Details in 2024/25 Session

Module Title	LM Financial Mathematics
School	Mathematics
Department	Mathematics
Module Code	06 39842
Module Lead	TBC
Level	Masters Level
Credits	20
Semester	Semester 1
Pre-requisites
Co-requisites
Restrictions	None
Contact Hours	Lecture-48 hours Guided independent study-152 hours Total: 200 hours
Exclusions
Description	This module introduces the fundamentals of mathematical modelling in finance, and the mathematics of financial annuities and investments. We explore the use of deterministic models that can be used to model and value known cashflows. We also explore stochastic, discrete-time models of investment risk and return. Topics: Data and financial modelling Theory of interest rates Equations of Value Theories of financial market behaviour Introduction to interest rate models Modern portfolio theory Asset valuation Measures of investment risk
Learning Outcomes	By the end of the module students should be able to: Describe, interpret, and discuss the theories on interest rates. Derive and define constant and time-varying compound interest functions and annuities Define, interpret, and apply an Equation of Value Describe, construct, interpret, and discuss the models underlying asset valuations Discuss the advantages and disadvantages of different measures of investment risk
Assessment
Assessment Methods & Exceptions	Assessment: Examination (80%); coursework (20%). Reassessment: Resit exam
Other
Reading List