Certificate in Financial Maths & Modelling Syllabus

Certificate in fiscal Maths & manakin Syllabus Overview The Certificate in Financial Maths & copy provides a rigorous and integ knock offed set of denary tools to understand and ex plain pecuniary instruments, financial venture and embodied value and the fundamentally important alliance callween them. The emphasis throughout is on t he practical flummoxling of real aliveness problems and opportunities.Techniques such as no- trade pricing, du bunsion, convexity and portfolio analysis including the trade-off between insecurity and return are explained and applied. The course analyses the use of wefts for financial run a risk forethought, and the military rating of different types of option use binomial pricing models, the Black Scholes model and other techniques. It also int roduces and applies Value at guess measures, their potential us es and their limitations. take aim building block 1 Fundamental concepts in financial mathematics and modelling take up Unit 1 in troduces the fundamental concepts of financial math and modelling in the five areas of interest rat e mathematics modelling the values of a series of fixed or growing emerging cashflows modelling the term structure of int erest ranges using no arbitrage relationships selected issues in probability and statistical models and modelling the mathematics of Value at Risk. withdraw Unit 2 casting the maths of debt shoot Unit 2 looks at modelling the maths of debt in the main areas of present values, fut ure cash flows, timing and risk and interest rat e sensitivity and duration models, in compareticular value relationships with think of to yield, maturity, coupon rate and coupon frequency.Study Unit 3 Modelling the maths of international exchange Study Unit 3 introduces the c oncepts of modelling t he maths of foreign exchange in the four areas of quoting conventions hedge using forward foreign exchange cont racts the relationships bet ween foreign exchange rates, interest rat es and inflation rates and applying volt-ampere to foreign exchange risk management. Study Unit 4 Modelling the maths of derivatives Study Unit 4 covers the maths and modelling of derivatives in t he two areas of int roduction to derivatives mathematics and modelling capital food market swap mathematics.Study Unit 5 Modelling the maths of options Study Unit 5 covers the maths and modelling of options in the four areas of option offspring mathematics option payoff maths in the circumstance of hedging option military rating modelling and options arbitrage and the put-call semblance relationship. Study Unit 6 Modelling the maths of portfolios and somatic finance Study Unit 6 introduces the fundamental concepts of modelling the maths of port folios and corporate finance in the t wo areas of modelling port folios analysis of risk and return, and modelling for corporate finance corporate valuation and the impact of ever-changing capit al structure. Association of Corporate Tre asurers (01. 04. 11, subject to change) Study Unit 1 Fundamental concepts in financial maths and modelling Unit cosmos 1. 0. 1 Notation and rules of algebra 1. 0. 2 Financial modelling fraction 1 interest group rate mathematics 1. 1. 1 Interest calculations and quoting conventions 1. 1. 2 The time-value relationship Section 2 Modelling values of a series of future cashflows 1. 2. 1 Infinite series cashflows (perpetuities) and their valuation 1. 2. Finite series cashflows (annuities) and their valuation Section 3 Modelling the term structure of interest rate s no arbitrage relationships 1. 3. 1 Zero coupon, forward and par structures of interest rates different forms of yield curves 1. 3. 2 No arbitrage relationships between zero coupon, forward and par rates Section 4 Probability and stati sti cal models selected issue s 1. 4. 1 Measures of aboriginal location (or central tendency), dispersion and correlation 1. 4. 2 Frequency distributions in theory and in practice Section 5 Modelling the maths of Value at Risk 1. . 1 Modelling the maths of Value at Risk for single risks 1. 5. 2 Extending the modelling of Value at Risk Study Unit 2 Modelling the maths of debt Section 1 pitiful term debt 2. 1. 1 Short term debt issuers, market participants and market conventions 2. 1. 2 Calculation of interest and valuation of short term debt instruments Section 2 Longer term debt 2. 2. 1 Analysis and valuation of bonds 2. 2. 2 sure interest rates and inflation indexing Section 3 Interest rate sensitivity and duration models 2. 3. Duration and int erest rat e harm sensitivity, relative and absolute measures 2. 3. 2 Interest rate immunisation, convexity and circumscribed convexity Study Unit 3 Modelling the maths of foreign exchange Section 1 Foreign exchange mathematics 3. 1. 1 Converting between currencies using spot foreign exchange rates 3. 1. 2 Converting between currencies determining and using forward foreign exchange rat es 3. 1. 3 The maths of forei gn exchange risk management 3. 1. 4 Applying Value at Risk to foreign exchange risk managementStudy Unit 4 Modelling the maths of derivatives Section 1 Introduction to derivative s mathematics 4. 1. 1 Payoffs for attachment derivatives and options 4. 1. 2 The maths of FRAs cashflows, hedging, valuation and basis risk 4. 1. 3 Futures contracts cashflows, hedging and valuation Section 2 Modelling swap mathematics 4. 2. 1 The maths of capital market swaps including interest rate swaps 4. 2. 2 The maths of cross-currency interest rate swaps Association of Corporate Treasurers (01. 04. 11, subject to change) Study Unit 5 Modelling the maths of optionsSection 1 excerpt payoff mathematics 5. 1. 1 Payoffs from trading strategies with single options 5. 1. 2 Payoffs from trading strategies involving more than than one option Section 2 Option payoff maths hedging and hedged results achieved 5. 2. 1 Hedging a portfolio options plus cardinal asset/(liability) 5. 2. 2 Hedging corporate exposures with options Section 3 Option valuation modelling 5. 3. 1 Binomial option valuation models 5. 3. 2 Black Scholes option pricing model 5. 3. 3 Arbitrage and the put-call parity relationshipStudy Unit 6 Modelling the maths of portfolios and corporate finance Section 1 Modelling portfolios analysi s of ri sk and return 6. 1. 1 Modelling simple port folios analysis of risk and return 6. 1. 2 Modelling multi-asset port folios & portfolios including liabilities Section 2 Modelling for corporate finance 6. 2. 1 Modelling the cost of corporate capital 6. 2. 2 Modelling the relationship between corporate value and capital structure 6. 2. 3 Modelling corporate valuation Association of Corporate Treasurers (01. 04. 11, subject to change)