FM102 Half Unit
Quantitative Methods for Finance
This information is for the 2025/26 session.
Course Convenor
Manav Chaudhary
Availability
This course is compulsory on the BSc in Finance. This course is not available as an outside option to students on other programmes. This course is not available to General Course students.
This course is not available for auditing students.
Course content
The main aim of this course is to help students connect the mathematical tools that they have acquired in previous courses, including MA108, with the economics and financial models that they will be covering in their subsequent courses. Additional mathematical tools will be covered as well. All mathematical material will be covered in the context of economic and financial models.
The mathematical material covered includes (i) linear algebra, vector spaces, matrices, eigenvalues and eigenvectors, (ii) derivatives, integrals, partial derivatives, and implicit functions, (iii) unconstrained and constrained optimization, (iv) probability distributions, conditional probability, expectation and regression, (v) stochastic calculus, Ito processes and Ito’s lemma, and (vi) differential equations and partial differential equations.
The economics and financial models covered include (i) expectation and present value of uncertain cashflows, (ii) pricing of government bonds and other fixed-income securities, (iii) pricing of options and other derivatives, (iv) utility maximization and portfolio choice, (v) financing decisions by firms, and (vi) trading games between agents with public or private information.
Teaching
33 hours of seminars in the Winter Term.
This course is taught in the interactive lecturing format. There is no distinction between lectures and classes/seminars; there are “sessions” only, and the pedagogical approach in each session is interactive.
Formative assessment
Weekly homework assignments.
Indicative reading
Mathematics for economists, Carl Simon and Lawrence Blume, W.W. Norton & Company, International Student Edition.
Assessment
Continuous assessment (100%)
Key facts
Department: Finance
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 4
CEFR Level: Null
Total students 2024/25: 56
Average class size 2024/25: 56
Capped 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Problem solving
- Application of numeracy skills
- Specialist skills