# Financial Mathematics

## Archive for September, 2011

Friday, September 30th, 2011

http://www.freakonomics.com/2011/09/26/probabalistic-auctions-why-dont-universities-raffle-off-endowed-chairs/ http://www.treasury.gov/connect/blog/Pages/Just-the-Facts-SPs-2-Trillion-Mistake.aspx

## Lecture 17

Friday, September 30th, 2011

I uploaded lecture 17 [pdf] [ppt]

## Lecture 16 and homework 6

Wednesday, September 28th, 2011

I uploaded lecture 16 and homework 6.

## Typos in homework 5 solutions

Sunday, September 25th, 2011

In problem 12 on page 76, S = P(1 + i)^n= \$5000(1 + 0.12/2)^8= \$7969.24 should be S = P(1 + i)^n= \$5000(1 + 0.12/2)^2= \$7969.24 In problem 14 on page 76, P = S (1+i(m)/m)^n = \\$6,000 ( 1 + 0.09/4)^12 should be P = S (1+i(m)/m)^{-n} = \\$6,000 ( 1 + 0.09/4)^{-12}.

## Advice on how to (and not to) study for the exam

Friday, September 23rd, 2011

First, read the study guide and make sure you are able to answer the type A questions. After you know all the formulas and the definitions, you should try to work on the problems on the practice list without using the textbook. At the exam you will not be allowed to use it. When you [...]

Friday, September 23rd, 2011

I explained in detail here ([pdf]) how the final grade is calculated. If you are not interested in doing the bonus problems or the extra credit problems nothing changed in the way your grade will be calculated.

## Practice problem solutions

Friday, September 23rd, 2011

I will NOT post solutions to the practice problems.

## Homework 5 solutions

Friday, September 23rd, 2011

I posted the solutions for homework 5: [pdf]

## Lecture 13

Wednesday, September 21st, 2011

I posted lecture 13 [pdf] [ppt]

## Bonus Problems Extension

Wednesday, September 21st, 2011

Since it was not clear how much the bonus questions are worth, I will give an extension, for these problems only, until Monday, Sep 26. The students that turned them in today will receive extra credit.