Financial Risk
- The nature of financial risk
- Financial mathematics and the management of financial risk
General Concepts in Financial Mathematics
- The basics
- Numbers raised to a power
- Linear and nonlinear functions
- Summation
- Time value of money
- Annuities
- Nominal and effective rates of interest
- Internal rate of return
- Interpolation
- Averages
- Basic calculus
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Market-Specific Financial Mathematics:
Money, Bond and Foreign Exchange Markets
- Forward interest rates
- Calculating price given yield
- Calculating yield given price
- Yield to maturity
- Zero coupon bonds
- Zero coupon bond yield curve
- Duration and modified duration
- Convexity
- Foreign exchange markets: forward points
Transaction-Specific Financial Mathematics:
Financial Derivatives and Measuring Value at Risk
- Statistical measures: mean, dispersion and correlation
- Basic probability theory
- A frequently used distribution: the Normal distribution
- Hypothesis testing
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