This course introduces key concepts of financial mathematics and financial instruments with an emphasis on applications in the actuarial field. It is intended to prepare students for Exam 2/FM – Financial Mathematics, which is jointly sponsored and administered by the Society of Actuaries and the Casualty Actuarial Society.

We will be using Piazza as the course website. Everyone is encouraged to ask questions and answer questions on Piazza. Answering questions will result in extra participation points.

Attendance on the days of midterm and final exams are mandatory.
Unexcused absences will adversely affect the students’ participation score.

Four problems are assigned every week and are graded based on completion and effort. For each assignment, a 3 means that the student attempted all questions and provided a detailed solution, and 0 means that the student missed the assignment or did not provide any details. The assignments are due in the beginning of the following lectures. No late or make-up assignments will be accepted. Homework solutions will be accessible on Piazza. The lowest homework grade will be dropped.

Eight open-book in-class quizzes on concepts and formulas will be administered in the lecture every week (except the first week). For each quiz, a score of 2 means that the student got all questions correct, a score of 1 means they are on the right track but made minor mistakes, and a score of 0 means that the student missed the quiz. No make-up quizzes will be accepted. Solutions to quizzes will be given on the lecture following the quiz.

There will be two exams of equal weight for this course.
Exam 1: 90 minutes, 15 questions
Exam 2: 90 minutes, 15 questions

Participation in class and Piazza discussions is strongly encouraged, and may influence students’ grades in the event that they are borderline. Students who pass Exam 2/FM during the semester will automatically pass this course no longer be required to attend class. Also, a student may opt out of taking Exam 2 if they have already achieved the pass mark by the final week.

A student’s performance will be evaluated based on assignments, quizzes, midterm and final. A better final grade can be used to replace the midterm grade. You need at minimum 60 points and attendance to the final in order to pass the course.

The Stat department will provide 30 unique permission numbers for enrollment. These will be distributed to students first come, first served at the first class meeting.