Financial Mathematics

Math 490A

Math 490A – Instructor

• WTHR 320 • Jeff Beckley

– http://www.math.purdue.edu/~jbeckley/– Math 818

– 49-40493

– 317-698-8543

– jeffbeckley@indy.rr.com

– Office Hours• Tuesday and Thursday

– Noon to 1:30

• By Appointment

Math 490A – Textbooks

• Mathematical Interest Theory

• Derivative Markets, Second Edition

• Actex Study Manual– Need to order from Mad River Books

Math 490A – Calculators

• Only Society of Actuaries Exam calculators may be used on tests and quizzes.

• See Syllabus

• Recommend Texas Instruments BAII Plus

• See PDF files on SoA Website

Math 490A – Procedures

• First fifteen minutes of each class with be spent on homework

• Evaluation– Quizzes (20%)

• 8 unannounced quizzes

– Homework (10%)– Three tests (70%)

• Two tests worth 20% each• Final worth 30%

Math 490A – Procedures

• Quizzes and Tests are closed book• Only permitted calculators are allowed• Quizzes cannot be made up

– Lowest Quiz dropped

• Tests can only be made up under extreme circumstances

• Homework is essential– Will not accept late– 2 lowest grades will be dropped

Math 490A – Procedures

• Note Test on Thursday before Spring Break

• Quizzes and Homework– Must show all your work to get full credit.– Answer without work will get less than 50%

credit

Math 490A – Dual Purpose

• Learn Interest Theory

• Exam Prep Course– SoA Exam FM– CAS Exam 2

• Course Outline

• Students Not Taking Exam in Spring

Exam FM/Exam 2

• Goal: 250 hours of Preparation – Keep a log– Turn it in to me weekly– If you lie to me, you are only fooling yourself

• Work as many problems as you can

• Plan for 250 hours

250 Hours

• Week ending 1-13 4 hours

• Next eight weeks 10.5 hours– Weeks ending 1-20 to 3-10

• Week ending 3-18 0 hours

• Next five weeks 14 hours– Weeks ending 3-24 to 4-21

250 Hours (Cont.)

• Week ending 4-28 7 hours

• Week ending 5-5 10 hours

• Weeks ending 5-12 and 5-19 28 hours

• May 20-24 20 hours

• May 25th PASSING SCORE

• Total hours 250!!!!

250 Hours

• Attend Class and Do HW 125 hours

• Actex Manual 75 hours

• Problems Provided by Me 50 hours