Fundamental probability tools for quantitatively assessing risk, with emphasis on application of these tools to problems encountered in actuarial science. Prerequisite: STA 584.

Fundamental concepts of mathematical theory of interest and applications in calculating present and accumulated values for various streams of cash flows. Introduction to financial instruments. Prerequisite: MTH 133.

Introduction to survival distributions and life tables, life annuities and life insurance, benefit premiums and benefit reserves. Prerequisites: ACT 539, 540.

Introduction to multiple state models including multiple life models and multiple decrements models, pension mathematics, interest rate models, and cash flow analysis for insurance products. Prerequisites: ACT 541.

Introduction to stochastic calculus for financial modeling, derivative securities with emphasis on option pricing using the Black-Scholes model, bond pricing using interest rate models. Prerequisites: ACT 540; STA 584; or Graduate Standing.