Financial Mathematics

These are resources that I prepared for the courses MTH 32400 - Theory of Financial Mathematics I and MTH 32500 - Theory of Financial Mathematics II. These courses are intended to prepare students for the Society of Actuaries FM Exam. Below you will find 126 pages of lecture notes that I wrote for use in these classes, as well as a formula sheet and flash cards that I provided to the students.

Lecture Notes

• All Chapters
• Chapter 01 - The Measurement of Interest
• Chapter 02 - Annuities
• Chapter 03 - Reinvestment and Amortization
• Chapter 04 - Bonds
• Chapter 05 - Yield Rates
• Chapter 06 - Immunization
• Chapter 07 - Introduction to Financial Derivatives
• Chpater 08 - Introduction to Options
• Chpater 09 - Swaps
• Chapter 10 - Binomial Trees

Additional Resources

• FM Exam Formula Sheet
• FM Exam Flash Cards

I have also created a homework system for use in this course. The system consists of over 400 algorithmically generated multiple choice problems and is intended to provide students with a means of practicing problems similar to those that they might find on the FM exam. I will later post documents providing samples of the types of problems found in this homework system.