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Presentation here

In the attached file, you will find a couple of exercises and a short clip from the movie 21. The professor in the video explains the topic in a very engaging way!

What is the probability of winning the car given that Ben changes his choice after the instructor¡¯s move?(link here)

This week (13-15 October), we will review the main statements related to conditional expectation, solve several exercises, and introduce the concepts of arbitrage opportunities in a multi-period financial market and risk-neutral probability.

You can now find the materials on bonds and stocks in the ¡°Schedule¡± (on October 6).

There will be no class on Wednesday, October 1. The next lecture will take place on Monday, October 6, as scheduled.

Solutions to exercises from September 10 are now to be found in the "Schedule" (on that date)

There are exercises posted for one-period option pricing, see "Schedule" Monday September 15. 

Here is the mandatory assignment. It will soon also appear in Canvas.

Note 1: It must be handed in in Canvas

Note 2: It must be passed before you are admitted to the final exam

Note 3: There is no second chance.....only one attempt. In order to pass, you must provide a decent answer to ALL exercises! 

Pleas see the "Schedule" on September 10 for a new set of exercises. 

Please check out the "Schedule" on September 1 and 3 for suggested solutions to last week's exercises.

There are new exercises posted, see Schedule on Wednesday Sept 3!

Here you can find 5 data series of daily stock prices. These data are for the exercises and the mandatory assignment. 

The lectures will be based on the book by Petters and Dong: An Introduction to Mathematical Finance with Applications (see syllabus-link). We refer to this book in the "Schedule" and in lectures.

You are all welcome to this year's edition of STK-MAT3700!

The first lecture is on Wednesday August 20 (Monday's lecture is cancelled!).