This course builds off of the topics covered in AT721 ("Mathematics of Compound Interest") by developing both basic and advanced models of corporate finance. Topics covered include net present value valuation, internal rate of return and profitability index models, capital budgeting models, and efficient market hypotheses. These tools will be used to understand and apply basic principles of option pricing theory, including the Black-Scholes formula with application to binomial lattice valuation. The material covered in this course may help students prepare for SoA/CAS Exam FM.

Note that this information may change at any time. Please visit the Student Link for the most up-to-date course information.