Page 166 - FINAL_HANDBOOK_20242025

Faculty of Science Handbook, Academic Session 2024/2025

between price levels, monetary forward rates, duration,
demand, aggregate demand convexity, immunization.
and aggregate supply in a
Keynesian model. Introduction to Derivatives:
Forward and futures, short and
Assessment: long positions, arbitrage, put
Continuous Assessment: 40% and call options, interest rate
Final Examination: 60% and currency swaps, put-call
parity, hedging.

SIQ2003 Assessment:
FINANCIAL MATHEMATICS Continuous Assessment: 40%
AND DERIVATIVES Final Examination: 60%

Time Value of Money: simple
interest, compound interest, SIQ3001
present and accumulated ACTUARIAL MATHEMATICS
values, nominal rate of interest, I
force of interest, equation of
value. Survival distributions: lifetime
probability functions, force of
Annuities: annuity immediate, mortality, moments and
annuity due, perpetuity, m-thly variance, parametric survival
annuity, continuous type models, percentiles,
annuity, deferred annuities, recursions, fractional ages,
varying annuities. select and ultimate life tables.

Loans: Amortization, sinking Life Insurances: continuous
funds, amortization with type life insurances, discrete
continuous payments. type life insurances,
probabilities, percentiles,
Bonds: Types of bonds, pricing recursive formula, m-thly
formula, callable and serial payments, varying insurance.
bonds, other securities.
Life Annuities: continuous type
Cash flows: Discounted cash life annuities, discrete type life
flows, internal rate of return, annuities, expectation and
money-weighted and time variance, probabilities,
weighted rate of return. percentiles, recursive formulas,
m-thly payments, varying
Term Structure of Interest annuities.
Rate: Yield curves, spot and

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