Course STAT240
Theory of Finance
Course offered :
- Current semester
- Next semester
Current programmes of study
Course offered by
| Number of credits | 10 |
| Course offered (semester) | Every second spring - odd-numbered years. |
| Schedule | Schedule |
| Reading list | Reading list |
Aim and Content
The theory of pricing financial derivatives, both in discrete and in continuous time is covered, including the Black-Scholes formula. Some theory of interest rate models is also included. The necessary theory of stochastic calculus and stochastic differential equations will be covered.
Learning Outcomes
The course aims to give an introduction to the modern theory of mathematical finance.
Course offered (semester)
Every second spring - odd-numbered years.
Language of Instruction
English
Recommended previous knowledge
STAT220 Stochastic Processes, ECON361 Investment and Financing II is an advantage
Compulsory Requirements
Compulsory exercises
Assessment methods
Written examination: 5 hours.
Grading Scale
The grading scale used is A to F. Grade A is the highest passing grade in the grading scale, grade F is a fail.