ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 3
Section 5: Annuity valuation at any time point.
Section 6: Annuities with diering interest and payment period.
Problem 1
Frank makes deposits of 200 into an account at the beginning of each

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 5
Section 9: Amortization of a loan.
Section 10: The sinking fund method of loan repayment.
Problem 1
Suppose that a $15,000 loan for a new car is to be repaid by level payments at the end of

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 6
Section 11: Bond valuation.
Section 12: Bond amortization, callable bonds.
Due: October 20, 2015 (Tue)
Sucient work must be shown to get credit for a correct answer. Partial credit may be given for
inc

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 2
Section 3. Force of interest, ination.
Section 4. Annuity-immediate and annuity-due.
Problem 1
You are given that A(t) = Kt2 + Lt + M , for 0 t 2, and that A(0) = 100, A(1) = 111, and
1
A(2

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 10
Section 19: Swaps.
Section 20: Calculator Exercises.
Problem 1
The following table gives 1-, 2-, and 3-year swap prices for oil in a market.
Length of swap 1 year 2 years 3 years
Swap pric

Section 3: Force of Interest, Ination
ACTS 4308
Natalia A. Humphreys
1 / 18
Acknowledgement
This work is based on the material in S. Broverman Study Guide
for SOA Exam FM/CAS Exam 2, 2011 Edition and on the notes
prepared by Professor Ryan Gill at the Uni

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 6
Section 11: Bond valuation.
Section 12: Bond amortization, callable bonds.
Problem 1
A ve-year 1,000 par value bond pays 4% coupons semiannually. The bond is priced at 1,122 to yield
an ann

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 3
Section 5: Annuity valuation at any time point.
Section 6: Annuities with diering interest and payment period.
Problem 1
Frank makes deposits of 200 into an account at the beginning of each

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 1
Section 1. Calculus review and eective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Problem 1
On September 27, Eric deposits 100 into a savings account

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 9
Sections 17, 18: Option Strategies.
Problem 1
The prices of European call and put options with a strike price of $100 expiring at the end of 6 months
are $2.56 and $9.57, respectively. The

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 2
Section 3. Force of interest, ination.
Section 4. Annuity-immediate and annuity-due.
Problem 1
You are given that A(t) = Kt2 + Lt + M , for 0 t 2, and that A(0) = 100, A(1) = 111, and
1
A(2

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 4
Section 7: Annuities whose payments follow a geometric progression.
Section 8: Annuities whose payments follow an arithmetic progression.
Due: October 6, 2015 (Tue)
Sucient work must be shown to get cr

1
Practice Test Questions
Exam FM: Financial Mathematics
Society of Actuaries
Created By: Digital Actuarial Resources
(Sample Only Purchase the Full Version)
Introduction:
This guide from Digital Actuarial Resources (DAR) contains sample test
problems for

SOCIETY OF ACTUARIES
EXAM FM
FINANCIAL MATHEMATICS
EXAM FM SAMPLE SOLUTIONS
Financial Economics
June 2014 changes
Questions 1-30 are from the prior version of this document. They have been edited to conform
more closely to current question writing style,

SOCIETY OF ACTUARIES
EXAM FM
FINANCIAL MATHEMATICS
EXAM FM SAMPLE QUESTIONS
Financial Economics
June 2014 changes
Questions 1-30 are from the prior version of this document. They have been edited to
conform more closely to current question writing style,

A Basic Course in the Theory of Interest and Derivatives
Markets:
A Preparation for the Actuarial Exam FM/2
Marcel B. Finan
Arkansas Tech University
c All Rights Reserved
Preliminary Draft
Last updated 08/12/09
2
In memory of my parents
August 1, 2008
Jan

T HE T H EO R Y O F I N TER ES T
SECOND EDIITIION SECOND ED T ON
STEPHEN G. KELLISON
READING NOTES
WEDNESDAY, SEPTEMBER 27, 2006 WEDNESDAY SEPTEMBER 27 2006
KELLISON'S READING NOTES TABLE OF CONTENTS
Chapter 1 The Measurement of Interest.4 1.1 Introductio

ACTS 4308
Instructor: Natalia A. Humphreys
SOLUTION TO HOMEWORK 1
Section 1. Calculus review and eective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Problem 1
On September 27, Eric deposits 100 into a savings account

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 7
Section 13: Measures of the rate of return on a fund.
Section 14: The term structure of interest rates, forward rates of interest and duration.
Due: November 3, 2015 (Tue)
Sucient work must be shown to

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 8
Section 15: Introduction to nancial derivatives, forward and futures contracts.
Section 16: Introduction to options.
Due: November 10, 2015 (Tue)
Sucient work must be shown to get credit for a correct

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 2
Section 3. Force of interest, ination.
Section 4. Annuity-immediate and annuity-due.
Due: September 10, 2015 (Thurs)
Sucient work must be shown to get credit for a correct answer. Partial credit may be

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 1
Section 1. Calculus review and eective rates of interest and discount.
Section 2. Nominal rates of interest and discount.
Due: September 3, 2015 (Thurs)
Sucient work must be shown to get credit for a c

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 5
Section 9: Amortization of a loan.
Section 10: The sinking fund method of loan repayment.
Due: October 13, 2015 (Tue)
Sucient work must be shown to get credit for a correct answer. Partial credit may b

ACTS 4308
Instructor: Natalia A. Humphreys
HOMEWORK 3
Section 5: Annuity valuation at any time point.
Section 6: Annuities with diering interest and payment period.
Due: September 22, 2015 (Tue)
Sucient work must be shown to get credit for a correct answe

Lecture Notes
on
Actuarial Mathematics
Jerry Alan Veeh
May 1, 2006
Copyright 2006 Jerry Alan Veeh. All rights reserved.
0. Introduction
The objective of these notes is to present the basic aspects of the theory of
insurance, concentrating on the part of t

SOCIETY OF ACTUARIES
EXAM FM
FINANCIAL MATHEMATICS
EXAM FM SAMPLE QUESTIONS
Interest Theory
This page indicates changes made to Study Note FM-09-05.
January 14, 2014:
Questions and solutions 5860 were added.
June, 2014
Question 58 was moved to the Derivat