Dr Gelly Mitrodima

This course is compulsory on the BSc in Actuarial Science. This course is available on the BSc in Business Mathematics and Statistics, BSc in Mathematics, Statistics, and Business and BSc in Statistics with Finance. This course is available as an outside option to students on other programmes where regulations permit. This course is not available to General Course students.

Please contact Dr Gelly Mitrodima. 

Students must have completed Mathematical Methods (MA100) and Elementary Statistical Theory (ST102).

• Introduction to actuarial modelling.
• The application of compound interest techniques to financial transactions.
• Generalised cash-models to describe financial transactions such as zero-coupon bonds, fixed interest securities, cash on deposit, equities, interest only loans, repayment loans, annuities certain and others.
• Deterministic and stochastic interest rates.
• Equations of value with certain and uncertain payments and receipts.
• Introduction to life insurance.

20 hours of lectures and 9 hours of seminars in the MT.

Students will be expected to give written answers to a number of problem sets.

J J McCutcheon & W J Scott, An Introduction to the Mathematics of Finance, Heinemann; Institute of Actuaries, Formulae and Tables for Actuarial Examinations. Core reading notes obtainable from the Institute of Actuaries.

Exam (100%, duration: 3 hours) in the January exam period.