Financial Math FM

Preface

This wikibook is intended to help prepare and review for the Society of Actuaries (SoA) Financial Math (FM) exam also called Exam 2 by the Casualty Actuarial Society (CAS). If you are looking for a more general introduction to financial math or you don't know what the SoA FM exam is, then this text is probably not for you.

This text will try to follow the SoA FM syllabus with an emphasis on problem solving and usage of financial calculator, in particular BA II Plus.

You may download the most update pdf version of this book by pressing 'Download as PDF' in the left hand side of print version page, or clicking here.

Table of chapters

About the FM Exam Topics in current SOA exam FM syllabus Time Value of Money Annuities Loans Bonds General Cash Flows and Portfolios Immunization Interest Rate Swaps Determinants of Interest Rates Extra topics related to financial economics Stochastic Interest Derivatives Options Options Strategies Hedging and Investment Strategies Forwards and Futures Sharpe ratio Glossary Formulas Problems