CEMLA Course: Financial Mathematics Curso

The course will include a historical overview of the development of mathematical finance and cover key topics such as stochastic calculus, starting with the random walk and the Feynman-Kac theorem. Participants will explore how this connects to the Cauchy problem for partial differential equations and the pricing of financial derivatives.

The course will also explore the binomial model and its application to pricing American options, delve into Monte Carlo methods, and introduce a stochastic approach to modeling bonds and interest rates. By combining theory with practical examples, the course seeks to equip participants with the skills to apply these mathematical techniques to real-world financial scenarios.

The course aims to provide participants with a solid understanding of the mathematics behind modeling and pricing financial instruments, such as bonds and derivatives.

This course is designed for analysts, junior researchers, and mid-level officials in economic research, financial stability, risk management, or related areas from CEMLA member institutions.