310218 (v.1) Actuarial Economics 302

Area:

Department of Mathematics and Statistics

Credits:

25.0

Contact Hours:

4.0

** The tuition pattern below provides details of the types of classes and their duration. This is to be used as a guide only. For more precise information please check your unit outline. **

Lecture:

1 x 3 Hours Weekly

Tutorial:

1 x 1 Hours Weekly

Prerequisite(s):

1234 (v.4) Economics 100 or any previous version
AND
12607 (v.3) Finance (Principles) 215 or any previous version
AND
302315 (v.2) Mathematical Statistics 202 or any previous version

Syllabus:

An introduction to financial economics and the efficient market hypothesis. Measures of investment risk. Portfolio theory. Models of asset returns and asset pricing models. Brownian motion and martingales. Stochastic calculus and Ito processes. Stochastic models of security prices. An introduction to derivatives, the Greeks and the binomial model. The Black-Scholes option pricing formula. The MRT and 5-step method. Arbitrage-free pricing and the 5-step method with the Black-Scholes model. Interest ratemodels.

** To ensure that the most up-to-date information about unit references, texts and outcomes appears, they will be provided in your unit outline prior to commencement. **

Field of Education:

081103 Insurance and Actuarial Studies

Funding Cluster:

02 - Accounting, Administration, Economics, Commerce

SOLT (Online) Definitions*:

Essential
*Extent to which this unit or thesis utilises online information

Result Type:

Grade/Mark

Availability

Year	Location	Period	Internal	Partially Online Internal	Area External	Central External	Fully Online
2006	Bentley Campus	Semester 2	Y

Area External	refers to external course/units run by the School or Department or offered by research.
Central External	refers to external and online course/units run through the Curtin Bentley-based Distance Education Area
Partially Online Internal	refers to some (a portion of) learning provided by interacting with or downloading pre-packaged material from the Internet but with regular and ongoing participation with a face-to-face component retained. Excludes partially online internal course/units run through the Curtin Bentley-based Distance Education Area which remain Central External
Fully Online	refers to the main (larger portion of) mode of learning provided via Internet interaction (including the downloading of pre-packaged material on the Internet). Excludes online course/units run through the Curtin Bentley-based Distance Education Area which remain Central External