The course is on financial mathematics, not economy. Therefore the focus will be on the mathematical modelling and the analysis of models in financial mathematics. The course literature is essentially the lecture notes (L.N.) of Harald Lang. The book(s) by John Hull will serve as supplementary literature, describing how the financial instruments are used in financial markets.

Examination: There will be a written examination. Registration for the written examination is required. Grades are set according to the quality of the written examination. Grades are given in the range A-F, where A is the best and F means failed, and Fx. Fx means that you have the right to a complementary examination (to reach the grade E). The criteria for Fx is F and that an isolated part of the course can be identified where you have shown a particular lack of knowledge and that the examination after a complementary examination on this part can be given the grade E.

Homework sets: There will be two non-mandatory homework sets (they are not a requirement for successfully passing the course). You may work individually or in groups of 2-3 persons. In total the homework sets give at most 10 points which are added to your result on the May- and/or August exam (in case you do not pass any of these exams your bonus points will be lost). To obtain the points you/the group must present the solution nicely in a report which clearly shows how the problems were solved. Each report, printed on paper, must be handed in on time in order to be accepted. You should also be prepared to present your solutions on the black board.

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