**Description:**

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. These skills, along with a solid computational foundation which can be obtained through courses available in the Major, and 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 Goals:**

Students who complete the major in Mathematical Finance will be able to:

- 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.

## Other Information

**Advice to Students**

What 1st year courses should you enrol in? To satisfy pre-requisites of the core courses in the major, students must take MATH1115, MATH1116 and FINM1001.

Students are recommended to take 2 extra MATH coded courses to obtain a Minor in Mathematics.

Students should seek further course advice from the academic convener of this Mathematical Finance major.

Students are permitted to count STAT2005 instead of STAT3004 towards the requirements of the Mathematical Finance major.Students must still meet the requirements of their program.

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## Requirements

**Major Requirements**

This major requires the completion of 48 units, which must include:

42 units from completion of the following course(s):

Code | Title | Units |
---|---|---|

MATH2320 | Advanced Analysis 1: Metric Spaces and Applications | 6 |

MATH2305 | Applied Mathematics I | 6 |

STAT2001 | Introductory Mathematical Statistics | 6 |

FINM2002 | Derivatives | 6 |

MATH3015 | Stochastic Analysis with Financial Applications | 6 |

MATH3029 | Probability Theory with Applications | 6 |

STAT3004 | Stochastic Modelling | 6 |

6 units from completion of the following course(s):

Code | Title | Units |
---|---|---|

STAT1003 | Statistical Techniques | 6 |

STAT1008 | Quantitative Research Methods | 6 |