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Course description
The course aims for the student to acquire knowledge of modern tools and instruments within financial mathematics together with a good knowledge of the Black-Scholes model.
Upon completion of the course the student shall be able to:
define and describe basic financial concepts
derive and explain heat equation, initial and boundary conditions
define, describe and explain the Black-Scholes equation
apply the Black-Scholes equation and its variations
calculate the value of different options such as European, American, exotic and path-dependent options