MIE375 – Financial Engineering
This course provides a background in the fundamental areas in financial engineering including relevant concepts from financial economics. Major topics include interest rate theory, fixed income securities, bond portfolio construction, term structure of interest rates, mean-variance optimization theory, the Capital Asset Pricing Model (CAPM), arbitrage pricing theory (APT), forwards and futures, and introduction to option pricing and structured finance.
MIE377 – Financial Optimization Models
This course deals with the formulation of optimization models for the design and selection of an optimal investment portfolio. Topics include Risk Management, Mean Variance Analysis, Models for Fixed Income, Scenario Optimization, Dynamic Portfolio Optimization with Stochastic Programming, Index Funds, Designing Financial Products, and Scenario Generation. These concepts are also applied to International Asset Allocation, Corporate Bond Portfolios and Insurance Policies with Guarantees.
ACT370 – Financial Principles for Actuarial Science II
This course covers mathematical theory of financial derivatives, discrete and continuous option pricing models, hedging strategies and exotic option valuation.
CHE374 – Economic Analysis and Decision Making
This course discusses economic evaluation and justification of engineering projects and investment proposals. Cost estimation; financial and cost accounting; depreciation; inflation; equity, bond and loan financing; after tax cash flow; measures of economic merit in the private and public sectors; sensitivity and risk analysis; single and multi-attribute decisions are all covered in this course. It will also provide an introduction to micro-economic.
CHE375 – Engineering Finance and Economics
This course consists of three modules: 1) managerial accounting, 2) corporate finance and 3) macro economics. The first module, managerial accounting, will consist of an introduction to financial statements and double entry record keeping, then delve deeper into aspects of revenue, expenses, assets, debt and equity. The second module, corporate finance, will introduce the concept of risk and return, and the Capital Asset Pricing Model, and then delve deeper into capital budgeting, corporate financing, financial statement analysis and financial valuation. The third model, macro economics, will introduce global aspects of business, including economic, political, societal and technological, then discuss factors such as GDP, inflation, unemployment, interest rates, foreign exchange rates, fiscal debt/surplus and balance of payments, and their impact on the financials of a given country.