MATH20210 Fundamentals of Actuarial and Financial Mathematics II

Mission Statement of the Actuarial Profession: To develop the role and enhance the reputation of the actuarial profession in providing expert and relevant solutions to financial and business problems, especially those involving uncertain future events. This module will show how to solve financial and business problems in actuarial science.

The module is divided into five units:

10. Investments
11. Simple Compound Interest Problems
12. Forward Contracts and the No Arbitrage Assumption
13. Term Structure of Interest Rates
14. Stochastic Interest Rate Models. Use of Excel spreadsheets and simple VBA programmes to carry out data analyses and financial modelling.

Show/hide contentOpenClose All

Curricular information is subject to change

Learning Outcomes:

The student will develop:

1. a familiarity with basic financial instruments;
2. computational skills used in the actuarial profession;
3. team skills by working together on problems;
4. a good class spirit (future financial contacts).

Student Effort Hours:
Student Effort Type Hours
Lectures

36

Tutorial

12

Specified Learning Activities

24

Autonomous Student Learning

36

Total

108

Approaches to Teaching and Learning:
Lectures, tutorials, enquiry and problem-based learning.
Requirements, Exclusions and Recommendations
Learning Requirements:

Students must have taken MATH20130 prior to this module.
A good knowledge of first year undergraduate calculus and algebra will be assumed, such as that given in (a) MATH10120, Linear Algebra with Applications to Economics; MATH10130 Introduction to Analysis for Economics and Finance; MATH10140 Advanced Calculus for Economics and Finance or (b) MATH10040, Numbers and Functions; MATH10340, Linear Algebra in the Mathematical and Physical Sciences; MATH10350, Calculus in the Mathematical and Physical Sciences or (c) their equivalents from other universities.

Learning Exclusions:

Students NOT taking a degree or diploma in Actuarial Science or Financial Mathematics CANNOT take this module.

Module Requisites and Incompatibles
Pre-requisite:
MATH10040 - Numbers & Functions, MATH10120 - Linear Algebra Apps to Econ, MATH10130 - Intro to Analysis (E&F), MATH10140 - Advanced Calculus (E&F), MATH10340 - Linear Algebra 1 (MPS), MATH10350 - Calculus (MPS)

Co-requisite:
MATH20130 - Fund. Actuarial Mathematics I

Prerequisites: MATH10120 and MATH10130 and MATH10140 OR MATH10040 and MATH10340 and MATH10350

Assessment Strategy
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade

Not yet recorded.

Carry forward of passed components
No

Resit In Terminal Exam
Autumn Yes - 2 Hour