# Finance

### TW-Mi-097

The financial world affects the life of all of us---this is undeniable given the events of the past fifteen years. Consequently, knowledge of and insight into this world has grown in importance and there is great demand for people with insight into financial mathematical models and the extent to which they describe the real market.

Stocks and bonds are some of the basic financial instruments: companies issue stock as a means to acquire the capital they require for their investments; the stock are bought by investors, like pension funds and insurance companies, but also individuals, all looking for a good rate of return; banks participate in stock and option trading, but also write options and create other products.

Attending the minor Finance you will study these products, learn methods to determine their value, as well as to understand the interplay between options, stocks, and bonds, all by using mathematical tools. Learning to work with mathematical models in a practical setting, specifically when trying to deal with uncertainty, may very well be of use to you in a much wider context.

### Education methods

Lectures, exercises, computer exercises, projects

### Participating institutions

Faculty of Electrical Engineering, Mathematics & Computer Science

### For whom?

All TU Delft students, provided they possess the prerequisite skills and knowledge. Specifically required: probability and statistics at the level of TU Delft courses based on (the better part of) A modern introduction to probability and statistics by Dekking et al, or equivalent. Basic knowledge of and enthusiasm for mathematics as well as familiarity with Matlab or R is helpful (several courses require programming).

### What will you learn

After successful completion of the minor program, the student:

• is able to explain the workings of a number of financial products and the interaction between products in financial markets;
• is familiar with methods to assess and control financial risk;
• has acquired insight in the application of probabilistic and statistical methods in financial and economical problems;
• has acquired skills to perform and interpret stochastic simulations.

### Course overview

The minor is composed of the following courses (each with a short characterization):

### Register for this minor

To register, please follow the procedure described at Minors - English page, or Minors- Dutch page.