21-270: No Office Hours Today

I've had to cancel my office hours today. I need to be home while my heat pump is getting a new compressor installed. I apologize for the short notice, but you should be well served by the TA's during their office hours. Alexandra Klimova from 12-1 in WEH 6213, Peter Krengel from 1-2 in WEH 7215 and Jason Kam from 2-4 in WEH 7215. I'll see you all tomorrow in class.

21-270: Week #3

The reading and homework assignments for Week #3 have been posted. You can follow the link from the Schedule page.

21-270: Week #2

The reading and homework assignments for Week #2 have been posted. You can follow the link from the Schedule page.

21-270: Welcome to Introduction to Mathematical Finance

Welcome to 21-270 Introduction to Mathematical Finance. This blog will be used for announcements and information related to the course. You will find your homework assignments on the Schedule Page of the Course Website. There is also a Blackboard site for the course, which will be used to distribute the text and solutions to assignments, and also to allow you access to your recorded grades.

During the semester, we will investigate the pricing of derivative securities (derivatives) and of fixed income securities (bonds). We will focus on some apparently simplistic models of financial markets. These models, though, illustrate many of the concepts that are necessary to develop and understand more complicated models in 21-370 Discrete Time Finance and 21-420 Continuous Time Finance. Moreover, some of the models we will consider play a direct role in building the models used in Discrete Time Finance.