Financial Mathematics

Course detail Description

Financial Mathematics studies problems of financial decision by combining various techniques from pure and applied mathematics. This course covers a diverse range of topics, from classical options pricing theory to post-crisis financial mathematics on optimal hedging, investment and risk management.

Like any branch of applied mathematics, financial mathematics analyses a given problem by first building a mathematical model for it and then examining the model. Both steps require detailed knowledge in different areas of mathematics, including probability, statistics, optimisation, computer science and many more traditional fields of mathematics.

Our Financial Mathematics MSc is a unique course that encompasses the essential skills required for successful risk management, trading and research in quantitative finance: probability, statistics, optimisation, computing and financial markets.

You will explore probability theories, risk neutral valuation, stochastic analysis as well as interest rate and credit risk modules. We also offer you the opportunity to study an additional zero-credit supportive module called mathematical analysis for financial mathematics.

The Financial Mathematics MSc offers you the choice to study either full or part-time and is made up of optional and required modules. You must take modules totalling 180 credits to complete the course. If you are studying full-time, you will complete the course in one year, from September to September. If you are studying part-time, it will take two years to complete, you will study the required modules with some optional modules in the first year, and a further selection of required and optional modules including the 60-credit financial mathematics report module in your second year.

Bloomberg terminal laboratory

King’s is one of only a few academic departments in the UK that offers full access to Bloomberg terminals. These terminals will provide you access to live financial data. They are heavily used within the financial industry, and the data they provide is critical in assisting traders in making investment decisions and for risk managers monitoring investment probabilities. We have a number of Bloomberg terminals available for use by the Financial Mathematics MSc course.

You will use the Bloomberg terminals to:

• gain an intuition for the conduct of real financial markets
• develop potential investment strategies
• experience using real-world investment and risk management software and obtain data for research.

The skills you will learn from using the terminals are highly valued by employers. King’s is part of a strong network of financial mathematics in London with connections both in academia and in the industry.

We are also members of the University of London and by arrangement, you can enrol in optional modules at other institutions within the University of London, which includes Birkbeck, London School of Economics and Political Sciences, University College London and many others.

We use lectures, seminars and group tutorials to deliver most of the modules on the course. You will also be expected to undertake a significant amount of independent study.

You are expected to spend approximately 10 hours work per credit for each module you attend in your degree, e.g. 150 hours work for a 15 credit module. These hours cover every aspect of the module.

The primary method of assessment for this course is a combination of written examinations, essays, coursework, individual or group projects, class tests and oral presentations.

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Structure

Year 1

Courses are divided into modules. You will normally take modules totalling 180 credits.

You are required to take:

• Probability Theory (15 credits)
• Risk Neutral Valuation (15 credits)
• MSc Financial Mathematics Project (60 credits)

• Mathematical Analysis for Financial Mathematics (0 credits)

Additionally, you are required to take modules totalling 90 credits from a range of optional modules that may typically include:

• Financial Markets (15 credits)
• Statistics in Finance (15 credits)
• Stochastic Analysis (15 credits)
• Recent Topics in Financial Mathematics (15 credits)
• Incomplete Markets (15 credits)
• C++ for Financial Mathematics (15 credits)
• Exotic Derivatives (15 credits)
• Interest Rates and Credit Risk (15 credits)
• Econophysics (15 credits)
• Machine Learning (15 credits)

Students taking the part time course should aim to take four modules in each year. The project is taken in the second year.

King’s College London reviews the modules offered on a regular basis to provide up-to-date, innovative and relevant programmes of study. Therefore, modules offered may change. We suggest that you keep an eye on the course finder on our website for updates.