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Mathematics for Finance


  • Credit value: 30 credits at Level 6
  • Convenor: Professor Sandeep Kapur
  • Assessment: a three-hour examination (80%) and coursework (20%)

Module description

This module will inform you about all of the mathematics employed in the other courses on the MSc Finance and provide a basis for the mathematics required for the programme. You will also learn about the benefits of using mathematical vocabulary and reasoning to analyse economic and financial models.

Learning objectives

By the end of this module, you should be able to:

  • understand basic algebra, including: numbers; solving equations; exponents; functions; and graphs
  • use differential calculus and understand the concepts of: slopes; ordinary derivatives; higher-order derivatives; optimisation; partials; Log, exponential and inverse functions; differentials; and total derivatives
  • solve unconstrained and constrained optimisation problems
  • understand the concept of time value of money and work out the way in which financial calculations are worked out
  • use integral calculus and understand how it can be applied to continuous time finance
  • use linear algebra to solve systems of equations.