AMA 273
Lecture 2
Topics To Cover:
1. Principle = P , interest rate = r, capital = C. After t units of time
(year/month/day), C = (1 + r)t P .
2. What is the recurrence relation associated with the above.
3. Compound interest nominal interest rate, APY (a

Integration: Functions of 1 Variable
b
f (x) dx
Area under a curve
a
Calculating the integral as the limit of a sum of rectangles
n
b
f (x) dx = lim
a
n
f (xk )xk
k=1
2
Riemann Sum
Theory of the Riemann Sum
A function f (x) is dened over an interval (or

Lecture 7
Lecture 4
Learning Outcome:
Partial Dierentiation:
When to use
du
u
and
?
dx
x
Dierentials and approximations.
The Mid-Term Test includes the above parts of Lecture 7.
Chain rule.
Maxima and Minima.
Should know the basic dierentiation formul

Lecture 12
Stock Options
Not required to know the detailed math. theory of how the B-S
PDE is derived and solved, but should know how it is used,
especially the meanings of the various terms listed below:
Call Option right to buy at a xed price with expir

AMA 273
Lecture 5
Finish the topic of partial dierentiation in the Lecture 4 notes.
Applications of partial dierentiation.
Extra Work
I would like to have two students to work independently on each of the
following items. For the last two items, basically

AMA 273 (Jan 2015)
Dr.Leung Chun Sing
TU721 Ofﬁce Hours: Tuesday 10:00 am. — 12:00 noon
Use the email in Blackboard to contact me
Lecture 1
Questions To Think About:
1. Why is mathematics important in the study of (BF) economics and
ﬁnance?
2. Why is calc

AMA 273
Lecture 3
Topics To Cover:
1. Optimization for functions of one variable innite and nite domain.
Local vs global maximum/minimum.
2. How to nd max/min for functions that may not be dierentiable at
every point. Example: Find the global and local ma