Discrete-Time Financial Modelling - FMA 675
This course introduces
the most common financial contracts that are
traded on exchanges between the financial institutions and their clients. It discusses
Arbitrage pricing within the framework on
one period model, as well as valuation and
hedging of European and American options,
the Cox-Ross-Rubinstein Model, arbitrage
free discrete time models of spot and futures
markets, and fundamental theorems of asset
pricing for a finite model of security market.
Prerequisites: MAT 670, FMA 640.