MA5232: Modeling and Numerical Simulations
Semester 2, 2008/2009

Instructor: Dr. DAI Min (in the first three weeks)

 

Venue: S14-03-01

 

Time: Thursday 1900-2200


Course Description (Week 1 to 3).

We will focus on two fundamental problems in modern finance: option pricing (week 1 and 2) and portfolio selection (week 3). I will tell you how to formulate these problems as mathematical models. For a syllabus, see Preface .

Course Grade

The final grade is based on assignments and/or projects. 

 

Course Topics

 

Week

Date

Lecture Notes

Remark

1

15 Jan

Option Pricing

 

 

Portfolio Selection

Matlab Codes:

Black Scholes formula: European call, European put

Monte-Carlo simulation;

Binomial tree method

 

 

Assignment   (5 March)

2

22 Jan

3

29 Jan