Computational Methods for Finance - MATH5335

Faculty: Faculty of Science

School: School of Mathematics and Statistics

Course Outline: http://www.maths.unsw.edu.au/

Campus: Sydney

Career: Postgraduate

Units of Credit: 6

EFTSL: 0.12500 (more info)

Indicative Contact Hours per Week: 3

Excluded: MATH3311

CSS Contribution Charge: 2 (more info)

Tuition Fee: See Tuition Fee Schedule

Further Information: See Class Timetable

Description

In the end finance is concerned with making definite numerical recommendations that frequently can only be obtained by analysing sophisticated models using high-speed computers. This course studies the design, implementation and use of computer programs to solve practical mathematical problems of relevance to finance, insurance and risk management.
It includes a review of MATLAB, floating point numbers, rounding error and computational complexity, and a selection of topics from: approximation and parameter estimation, Fourier series and the FFT, finite difference approximations, partial differential equations (Black-Scholes PDE), sparse linear systems, nonlinear algebraic equations, trees, Monte Carlo methods and simulation, random numbers and variance reduction, numerical integration.