MATH3075-Financial Mathematics (1 Viewer)

[FLYHAWK14]

Ok so I'm going for an Applied Mathematics major and by the looks of things I may have to take this subject, either next year or the year after. Does anyone have any experience in this subject or know of anyone who does? Also is it really essential? I don't have much of a Finance/Economic background and I had a look at some of the first couple of lectures and I haven't done much probability since MATH1005, and the terminology feels like another language to me and I don't have much interest in this kind of area although I do see it's real world worth.

Basically what I'm asking is, do I really really have to do this subject?

 

[Trebla]

It is quite hard if you haven't got a good grounding in probability theory. A good grounding in measure theory helps as well but is not essential.

 

[FLYHAWK14]

It is quite hard if you haven't got a good grounding in probability theory. A good grounding in measure theory helps as well but is not essential.

Which subjects are best suited to take to prepare for this? I have MATH2061 and MATH2065 under my belt already.

 

[Trebla]

Which subjects are best suited to take to prepare for this? I have MATH2061 and MATH2065 under my belt already.

Typically the STAT subjects are best suited as preparation for this (in particular STAT2011 and STAT3011). MATH2070 (the second year version of financial maths) is also useful but not really necessary.

 

[FLYHAWK14]

Typically the STAT subjects are best suited as preparation for this (in particular STAT2011 and STAT3011). MATH2070 (the second year version of financial maths) is also useful but not really necessary.

That's a fair bit to do for one unit of study and I'm not even sure I could fit those in. :/ I've got more than enough 2nd year subjects to worry about. Is there no other alternative? I may as well change my Applied Maths major to Pure at this rate

 

[CookBookStew]

That's a fair bit to do for one unit of study and I'm not even sure I could fit those in. :/ I've got more than enough 2nd year subjects to worry about. Is there no other alternative? I may as well change my Applied Maths major to Pure at this rate

Pure is likely more involved than Applied is, also most of the necessary Pure units are Advanced. 3975 isn't bad Rutkowski approaches it from Measure Theory, you will need a fair bit of probability to truly understand the material. That said, you can do well (probably not a HD though) without a large amount of Statistics or Measure Theory knowledge. 2970 also has little to do with 3975, 2970 is optimization while 3975 is to do with options pricing.

 

[Trebla]

That's a fair bit to do for one unit of study and I'm not even sure I could fit those in. :/ I've got more than enough 2nd year subjects to worry about. Is there no other alternative? I may as well change my Applied Maths major to Pure at this rate

By the way there is no pure or applied major per se, just Mathematics. You can either replace that with a pure unit of study or just give it a go and see what happens.

 

[CookBookStew]

By the way there is no pure or applied major per se, just Mathematics. You can either replace that with a pure unit of study or just give it a go and see what happens.

I thought if you wanted to do honours in pure they want you to have done the rings and fields class as well as the metric spaces class? Although there is no distinction with what you graduate with (unless you do financial mathematics and statistics) I think it does matter what classes you chose to take.

 

[Trebla]

I thought if you wanted to do honours in pure they want you to have done the rings and fields class as well as the metric spaces class? Although there is no distinction with what you graduate with (unless you do financial mathematics and statistics) I think it does matter what classes you chose to take.

It only matters when it comes to honours. Even then, the honours program is flexible enough to accomodate someone with a mixture of pure and applied. As long as you have a good enough grounding to do your thesis (whether it be in pure or applied) then it should be fine.

 

[FLYHAWK14]

By the way there is no pure or applied major per se, just Mathematics. You can either replace that with a pure unit of study or just give it a go and see what happens.

So you're saying I can get by with adding a pure unit with 3 applied units? Is there a rule saying I can? I'm not really interested in doing Honours for Mathematics, probably for the other major though(Biochemistry/MBLG/something Biology related) if you are wondering. Oh and I'm intending on doing 3063, 3078 and 3076(not next year)

 

[Trebla]

From
http://www.maths.usyd.edu.au/u/UG/SM/hbkpt1.html#HowMany
"To major in Mathematics you must complete four or more Senior Mathematics units. (A double major consists of eight Senior Mathematics units.) You may choose Pure Mathematics, Applied Mathematics or a mix of the two."

 

[FLYHAWK14]

From
http://www.maths.usyd.edu.au/u/UG/SM/hbkpt1.html#HowMany
"To major in Mathematics you must complete four or more Senior Mathematics units. (A double major consists of eight Senior Mathematics units.) You may choose Pure Mathematics, Applied Mathematics or a mix of the two."

A mix hey? Well that solves my problem, I'll just add one Pure unit of my choice and be on my merry way then.

 

[jet]

If you're doing a biologically-inclined major then I'd recommend MATH3963. Martin Wechselberger is fantastic and he gives you some basic skills in starting to apply maths to biology (although I was a little disappointed with the small amount of actual modelling there was).

 

[FLYHAWK14]

If you're doing a biologically-inclined major then I'd recommend MATH3963. Martin Wechselberger is fantastic and he gives you some basic skills in starting to apply maths to biology (although I was a little disappointed with the small amount of actual modelling there was).

I don't think I have the marks for 3963...

 

[CookBookStew]

If you think you would struggle in 3963 I would guess that you would struggle just as much if not more so in the Pure Mathematics courses. Almost all of them are only offered at the advanced level, especially the ones that are "worth" taking, namely Metric Spaces, Rings, Fields and Galois Theory, Differential Geometry, Measure Theory, and Complex Analysis. That said, if you put in the effort and honestly enjoy maths I'm sure you can do well in the Advanced courses.

 

[FLYHAWK14]

If you think you would struggle in 3963 I would guess that you would struggle just as much if not more so in the Pure Mathematics courses. Almost all of them are only offered at the advanced level, especially the ones that are "worth" taking, namely Metric Spaces, Rings, Fields and Galois Theory, Differential Geometry, Measure Theory, and Complex Analysis. That said, if you put in the effort and honestly enjoy maths I'm sure you can do well in the Advanced courses.

Yeah but I don't think I'll even get permission to even get in to those. As for which Pure Mathematics course I'll do it'll probably be either MATH3065(Logic and Foundations) or MATH3068(Analysis)

 

[Lopemann]

 

[Lopemann]

Typically the STAT subjects are best suited as preparation for this (in particular STAT2011 and STAT3011). MATH2070 (the second year version of financial maths) is also useful but not really necessary.

I'm thinking about doing MATH3075 next sem.
I did STAT2011 but havent done STAT3011 yet.
Would you recommend me to go for STAT3011 first and save MATH3075 next year,
or it is okay for me to just do MATH3075 next sem without doing STAT3011?

I wouldnt say I have a good grounding of probability, but I do have a good understanding of STAT2011 materials.

Thanks Trebla.

 

[antheung]

I'm thinking about doing MATH3075 next sem.
I did STAT2011 but havent done STAT3011 yet.
Would you recommend me to go for STAT3011 first and save MATH3075 next year,
or it is okay for me to just do MATH3075 next sem without doing STAT3011?

I wouldnt say I have a good grounding of probability, but I do have a good understanding of STAT2011 materials.

Thanks Trebla.

Only a very basic understanding of probability and statistics is required for MATH3075 (like how to calculate expected values; a basic understanding of the normal distribution is also needed for the last chapter). I did MATH3975 last semester without having completed any of STAT2011/STAT2012/STAT3011/MATH2070 but I did alright.

In fact, I would say most of the arithmetic involved in MATH3075 is just addition, subtraction, multiplication, and division ...

 

[Lopemann]

In fact, I would say most of the arithmetic involved in MATH3075 is just addition, subtraction, multiplication, and division ...

lol thanks mate. It's really a confidence booster