Skip to Content


Last modified: 22 May 2019 17:07

Course Overview

Financial mathematics is a fundamental tool in modeling problems in economics and finance. The tools and techniques are employed by almost all large financial institutions in order to obtain predictive models of the market. It is also a necessary tool in actuarial science. The course enhances problem solving and abstraction skills.

Course Details

Study Type Undergraduate Level 4
Session First Sub Session Credit Points 15 credits (7.5 ECTS credits)
Campus Old Aberdeen Sustained Study No
  • Professor Jarek Kedra

What courses & programmes must have been taken before this course?

  • Either MA1005 Calculus 1 (Passed) or MA1508 Calculus II (Passed)
  • Any Undergraduate Programme (Studied)
  • Either Programme Level 3 or Programme Level 4
  • Either Mathematics (MA) or Mathematical Sciences (MX)

What other courses must be taken with this course?


What courses cannot be taken with this course?


Are there a limited number of places available?


Course Description

The course is an introduction to financial mathematics, a branch of Mathematics which deals with mathematical models of financial markets. The course will cover the discrete time models of financial markets. The topics will include: binomial models, risk free assets, portfolio management, forward and future contracts, the principle of no arbitrage.
If time permits, continuous time models will also be discussed.


  • Basic notions of probability theory.
  • Simple market model.
  • Risk-free assets.
  • Portfolio management.
  • Forward and future contracts.
  • Options.
  • Binomial and general discrete models.

Further Information & Notes


This course alternates with MX4086 Optimisation Theory.

Contact Teaching Time

Information on contact teaching time is available from the course guide.

Teaching Breakdown

More Information about Week Numbers

Details, including assessments, may be subject to change until 31 August 2023 for 1st half-session courses and 22 December 2023 for 2nd half-session courses.

Summative Assessments

1st Attempt

  • One 2-hour exam (80%)
  • In-course assessment (20%)


  • One 2-hour exam.
  • Best of EITHER 100% resit OR 80% resit and 20% coursework.

Formative Assessment

There are no assessments for this course.


Within 2 weeks of assessment.

Notes left on exam scripts to indicate correctness of solutions.

Course Learning Outcomes


Compatibility Mode

We have detected that you are have compatibility mode enabled or are using an old version of Internet Explorer. You either need to switch off compatibility mode for this site or upgrade your browser.