The Mathematical Finance major provides the necessary theoretical framework required to price complex financial products such as derivative contracts. Mathematical finance has given tremendous impetus to research in and applications of probability theory and some other mathematics areas.
The skills acquired through this major equip students to continue to postgraduate research in mathematical finance or applied probability. Along with a solid computational foundation which can be obtained through courses available in the Major, these skills form an integral component of the attributes necessary to work as a “quant” in the banking and finance industry; for example, market makers, hedge fund analysts, statistical arbitrageurs and risk analysts in banks, central banks and regulators.
Learning Outcomes
Demonstrate mastery of mathematical concepts and techniques to the level of advanced Analysis.
Demonstrate mastery of the concepts and techniques of of Probability, Statistics, and Stochastic processes.
Demonstrate mastery of the ideas and concepts of Mathematical Finance.
Apply concepts and techniques from mathematics and statistics to finance problems.
Obtain a deep understanding of Finance in the context of advanced mathematical frameworks.
Think clearly, sequentially and logically, as demonstrated by the critical analysis of quantitative problems, in particular finance problems.
Appreciate that mathematics and statistics is embedded in everyday life through its influence in various fields, in particular in finance.
Draw on discipline based experiences of working collaboratively, communicating mathematical and economics knowledge and acting professionally and responsibility in further study, or professional pursuits.
Other Information
To complete this major students must also complete the following courses:
These courses can form part of a Foundational Science minor, another science minor/major or sequence of science electives. If a student is in a Flexible Double Degree, the courses can only contribute towards one degree.
Advice for first year students:
- To satisfy pre-requisites of the core courses in the major, students must take MATH1115, MATH1116, FINM1001 and either STAT1003 or STAT1008.
Additional advice:
- Students should note that this major only requires 2 x 3000 level coded courses. In order to complete the overall Science degree requirements of 5 x 3000 level course from the Science course list, students will need to complete another 3 x 3000 level Science courses.
- Students should seek further course advice from the academic convener of this Mathematical Finance major.
- Students must still meet the requirements of their program.
Requirements
This major requires the completion of 48 units, which must include:
6 units from the completion a course from the following list:
STAT1003 - Statistical Techniques (6 units)
STAT1008 - Quantitative Research Methods (6 units)
6 units from the completion a course from the following list:
STAT2001 - Introductory Mathematical Statistics (6 units)
STAT2013 - Introductory Mathematical Statistics for Actuarial Studies (6 units)
36 units from the completion of the following courses:
FINM2002 - Derivatives (6 units)
MATH2305 - Applied Mathematics I (6 units)
MATH2320 - Advanced Analysis 1: Metric Spaces and Applications (6 units)
STAT2005 - Introduction to Stochastic Processes (6 units)
MATH3015 - Stochastic Analysis with Financial Applications (6 units)
MATH3029 - Probability Theory with Applications (6 units)
