MTH5112 - Partial differential equations in finance - 2018

6 points, SCA Band 2, 0.125 EFTSL

Postgraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Faculty

Science

Organisational Unit

School of Mathematical Sciences

Chief examiner(s)

Dr Yan Dolisky

Coordinator(s)

Dr Yan Dolisky

Unit guides

Offered

Clayton

  • Second semester 2018 (On-campus)

Prerequisites

MTH3011 or equivalent

Synopsis

Elliptic and Parabolic partial differential equations. Sobolev Spaces. Weak and strong solutions. Maximum principle. Comparison principle. Viscosity solutions. Stochastic control theory. The dynamic programing principle. Feynmann-Kac representation formulas.

Outcomes

On completion of this unit students will be able to:

  1. Develop specialised mathematical knowledge and skills within the field of partial differential equations.
  2. Understand the complex connections between stochastic analysis and partial differential equations.
  3. Apply critical thinking to problems in partial differential equations that relate to financial models.
  4. Apply problem solving skills within the finance context.
  5. Formulate expert solutions to practical financial problems using specialised cognitive and technical skills within the field of partial differential equations.
  6. Communicate complex information in an accessible format to a non-mathematical audience.

Assessment

Examination (3 hours): 60% (Hurdle)

Continuous assessment: 40%

Hurdle requirement: To pass this unit a student must achieve at least 50% overall and at least 40% for the end-of-semester exam.

Workload requirements

Four contact hours per week

See also Unit timetable information