Mathematical Finance
Math 458/558
Adam S. Sikora
SUNY Buffalo
Version: December 2, 2015
Syllabus.
(1) cash flows (eg. deposits, loans), value of money in time,
financial transactions which do not involve risk
(2) Introduction to probability: probabilities

Mathematical Finance
Math 458/558
Adam S. Sikora
SUNY Buffalo
Version: October 29, 2015
Syllabus.
(1) cash flows (eg. deposits, loans), value of money in time,
financial transactions which do not involve risk
(2) Introduction to probability: probabilities

Mathematical Finance
Math 458/558 - Fall 2015
Class meets: M,W,F 9:00-9:50, NSC 210.
Instructor: Adam Sikora 115 Mathematics Building
Email: asikora at buffalo dot edu. ALWAYS include your course number in your email.
Office hours: Wed, Fri 3-4pm, or by a

346 Chapter i2 BASIC OPTIONS THEORY
EXERCiSES
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strike price, the time to expiration, the volatiiity of the underiying asset, the cash ﬂow
generated by the asset (such as dividend payments), and the prevailing interest rate
Although determination of an

316 Chapter 11
EXERCISES
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MODELS OF ASSET DYNAMICS
ito processes are usef'ui representations of asset dynamics. An important tool for
transforming such processes is ito’s lemma: If x(r) satisﬁes an Ito process. and ytt)
is deﬁned by ytr) 2 Mr, I), ito‘s