FINA 3740 — Fundamentals of Financial Math and Financial Markets
4 semester hoursUndergraduateLecture
Focuses on financial mathematics and financial markets, combining theoretical foundations with selected empirical and computational applications. Introduces core tools from linear algebra (matrix operations, vector spaces); calculus (differentiation and integration); optimization (Lagrange multipliers, inequality constraints, Kuhn-Tucker conditions, and basic convex analysis); and probability and stochastic processes (axioms of probability, random variables, joint distributions, and common stochastic models). Involves application of these methods to quantitative finance problems such as time-value-of-money- and regression-based market relationships, mean-variance portfolio optimization, simulation-based risk/return analysis, and introductory derivative-pricing models (e.g., Black–Scholes). Emphasizes implementation using modern computational tools to build quantitative and analytical skills for financial modeling and rigorous financial market analysis.