Recent innovations in financial markets have led to an increased demand for analytically skilled students. Understanding pricing models in derivatives and other exotic securities requires knowledge in finance and also statistics, stochastic processes, and differential equations. The financial engineering program is designed to provide students with opportunities to pursue a mathematically challenging program of study.
In addition to meeting the usual School of Management requirements, students would complete courses in the following groups:
Two semesters of calculus (Math 221 and Math 222)
Linear Algebra (Math 304)
Introduction to programming (CS 110 or CS 140 or equivalent)
Statistical Methods (CQS 112 or equivalent)
Introduction to Econometrics (Economics 466)
Investments (Finance 322) with Trading Room
Derivatives (Finance 450)
Corporate Finance (Finance 324) or International Finance/Risk Management (Finance 460)
Advanced Spreadsheet Modeling (SCM 360)
The program is designed for placement of students in investment banks. Only outstanding undergraduate students with a cumulative GPA above 3.5 will be admitted into the program. It is in their best interest to maintain that GPA while they are in the program.
Various institutional, analytical, and pragmatic aspects of security analysis and investment management; securities market, sources of investment information, bond and stock valuation models, risk return analysis, behavior of security prices, portfolio management, and capital market theory. Taken first semester senior year in the Trading Room. The Trading Room would be continued in the Spring semester as a 1 credit independent study.
Introduction to and a comprehensive analysis of the derivatives markets in the US. Topics include discussions of options, futures, swaps, and futures markets.
An in-depth examination of valuation and financial decision making in the corporate setting, including some cases analysis. Topics include capital market efficiency, required rates of return, options in the corporate setting, long-term investments, capital structure, financial planning, and dividend policy.
Seminar addresses issues in international finance including balance of payments, exchange controls, international reserves, adjustment mechanisms, and off-shore financing.
The student will gain advanced skills in the use of a spreadsheet, notably Excel, to perform modeling of business problems and solutions.
