May 02, 2026  
2017-2018 Undergraduate Catalog 
    
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2017-2018 Undergraduate Catalog [NOTE!!!! THIS IS AN ARCHIVED CATALOG. FOR THE CURRENT CATALOG, GO TO CATALOG.NIU.EDU]

STAT 484 - Financial Derivatives for Actuaries

Crosslisted as ECON 484X. Review of financial derivatives including futures, European and American options and exotic options. Greeks, trading and hedging strategies. Pricing derivative securities with appropriate boundary conditions, including the Black-Scholes formula, binomial trees, lattice models and finite difference methods. Simulation and variance reduction techniques. Interest rate models. Covers the learning outcomes regarding financial models in the exam MFE of the Society of Actuaries (SOA), which is also the Exam 3F of the Casualty Actuarial Society (CAS).

Prerequisites & Notes
PRQ: STAT 483 or consent of division.

Credits: 3