No.

CILOs

Weighting (if applicable)

1.

explain clearly concepts from advanced probability and  stochastic processes.

2

2.

formulate financial phenomena in terms of Brownian motions and stochastic processes.

2

3.

describe basic principles of quantitative finance, including no arbitrage and risk hedging.

3

4.

apply the Black-Scholes formula in pricing options.

2

5.

apply mathematical methods in deriving analytic relations among financial variables.

2

6.

the combination of CILOs 1-5

2

TLAs

CILO No.

Hours/week

Learning through teaching is primarily based on lectures.

1--6

39 hours in total

Learning through take-home assignments helps students understand advanced probability theory, stochastic processes, principles of quantitative finance and simple applications in modeling financial markets.

1--5

         after-class

Assessment Tasks/Activities

CILO No.

Weighting (if applicable)

Remarks

Test

1--3

15-30%

Questions are designed for the first part of the course to see how well the students have learned concepts of advanced probability, stochastic processes and mathematical principles of financial economics.

Hand-in assignments

1--5

0-15%

These are skills based assessment to help students understand advanced concepts of probability, stochastic processes and some applications in quantitative finance and option pricing.

Examination

6

70%

Examination questions are designed to see how far students have achieved their intended learning outcomes. Questions will primarily be skills and understanding based to assess the student’s versatility in probability theory, stochastic processes and principles of mathematical finance.

Formative take-home assignments

1--5

0%

The assignments provide students chances to demonstrate their achievements in applying concepts of mathematical finance learned from this course.