期货理论与实务英文版课件：Introduction Financial Engineer

1、Mathematics for Finance An Introduction to Financial EngineeringWhat is Financial Engineering?Financial Engineering refers to the bundling and unbundling of securities. This is done in order to maximize profits using different combinations of equity, futures, options, fixed income, swaps.They apply

2、theoretical finance, mathematics modeling skills, and computer algorithms to make pricing, hedging, trading and portfolio management decisions. Financial Engineers are prepared for careers in:Investment BankingCorporate Strategic Planning Risk ManagementPrimary and Derivatives Securities ValuationFi

3、nancial Information Systems ManagementPortfolio ManagementSecurity TradingSuggested BackgroundGenerally, Financial Engineers are strong on the following fields:Statistics/Probability and PDEsStochastic ProcessesC+MatlabR Programming Basic Business Finance TheoryWhat is a security?A security is a fun

4、gible, negotiable instrument representing financial value. Securities are broadly categorized into debt and equity securitiessuch as bonds and common stocks, respectively.Whats the purpose of securities?Rise New Capital: Depending on the pricing and market demand, securities might be an attractive o

5、ption.Repackaging: Achieve regulatory capital efficiencies. For the IssuerWhats the purpose of securities?Investment: Debt securities generally offer a higher rate of interest than bank deposits, and equities may offer the prospect of capital growth. Collateral: Purchasing securities with borrowed m

6、oney secured by other securities. For the HolderEquity and DebtTraditionally, securities are divided into debt securities and equity.DebtDebt securities may be called debentures, bonds, notes or commercial paper depending on their maturity and certain other characteristics.The holder of a debt secur

7、ity is typically entitled to the payment of principal and interest, together with other contractual rights under the terms of the issue, such as the right to receive certain information. Debt securities are generally issued for a fixed term and redeemable by the issuer at the end of that term.Equity

8、An equity security is a share in the capital stock of a company (typically common stock, although preferred equity is also a form of capital stock). The holder of an equity is a shareholder, owning a share, or fractional part of the issuer. Unlike debt securities, which typically require regular payments (intere