Graduate Curriculum Committee Course Proposal Form
for Courses Numbered 5000 and Higher
Note: Before completing this form, please carefully read the accompanying instructions.
Submission guidelines are posted to the GCC Web site: http://www.ecu.edu/cs-acad/gcc/index.cfm
1. Course prefix and number:
MATH 6300
2. Date:
3. Requested action:
X
New Course
Revision of Active Course
Revision & Unbanking of a Banked Course
Renumbering of an Existing Course from
from
to
#
Required
#
Elective
4. Method(s) of delivery (check all boxes that apply for both current/proposed and expected
future delivery methods within the next three years):
Current or
Proposed Delivery
Method(s):
X
On-campus (face to face)
Expected
Future Delivery
Method(s):
X
Distance Course (face to face off campus)
Online (delivery of 50% or more of the instruction is offered online)
5. Justification. Identify the committee or group (e.g., Graduate faculty of the Department of
English) that conducted the assessment of curriculum and student learning. Explain why the
unit wishes to offer or revise the course. Include specific results from the unit assessment that
led to the development or modification of the course. If applicable, cite any accrediting
agency/ies and reference the specific standard/s.
Mathematical interest theory is a key requirement for passing the Actuarial Exam FM/2,
the Probability Exam, and Exam MFE/3F, the Models for Financial Economics Exam.
As such, the Mathematics Department faculty determined that offering a course in the
Financial and Actuarial Mathematics would offer mathematics majors another career
option, and it would provide both our students as well as the department further options
in applied directions. This course is an addition to MATH 6100, which prepares the
students for the Actuarial Exam P/1, the Probability Exam, and Exam C, the Construction
and Evaluation of Actuarial Models Exam.
Approved by GCC April 2012; posted summer of 2012
6. Course description exactly as it should appear in the next catalog:
6300. Financial and Actuarial Mathematics (3)
P: Math 2172, 3307; or consent of instructor. A comprehensive introduction of the
mathematical interest theory. Topics include time value of money, annuities, loan
repayment, bond, valuation of derivative securities (European options, American
options, Exotic options), Black-Scholes Model, delta-hedging risk management.
Prepares the student for of the Society of Actuaries Exam FM “Financial
Mathematics”, and MFE “Models for Financial Economics”.
7. If this is a course revision, briefly describe the requested change:
8. Course credit:
Lecture Hours
3
Weekly
OR
Per Term
Credit Hours
s.h.
Lab
Weekly
OR
Per Term
Credit Hours
s.h.
Studio
Weekly
OR
Per Term
Credit Hours
s.h.
Practicum
Weekly
OR
Per Term
Credit Hours
s.h.
Internship
Weekly
OR
Per Term
Credit Hours
s.h.
Other (e.g., independent study) Please explain.
Total Credit Hours
9. Anticipated annual student enrollment:
s.h.
3
10
10. Changes in degree hours of your programs:
Degree(s)/Program(s)
Changes in Degree Hours
11. Affected degrees or academic programs, other than your programs:
Degree(s)/Program(s)
Changes in Degree Hours
12. Overlapping or duplication with affected units or programs:
X Not applicable
Documentation of notification to the affected academic degree programs is
attached.
13. Council for Teacher Education (CTE) approval (for courses affecting teacher education):
X Not applicable
Approved by GCC April 2012; posted summer of 2012
s.h.
Applicable and CTE has given their approval.
14. University Service-Learning Committee (USLC) approval:
X Not applicable
Applicable and USLC has given their approval.
15. Statements of support:
a. Staff
X Current staff is adequate
Additional staff is needed (describe needs in the box below):
b. Facilities
X Current facilities are adequate
Additional facilities are needed (describe needs in the box below):
c. Library
X
Initial library resources are adequate
Initial resources are needed (in the box below, give a brief explanation and an
estimate for the cost of acquisition of required initial resources):
d. Unit computer resources
X
Unit computer resources are adequate
Additional unit computer resources are needed (in the box below, give a brief
explanation and an estimate for the cost of acquisition):
e. ITCS resources
X
ITCS resources are not needed
The following ITCS resources are needed (put a check beside each need):
Mainframe computer system
Statistical services
Network connections
Computer lab for students
Software
Approval from the Director of ITCS attached
16. Course information (see: Graduate Curriculum and Program Development Manual for
instructions):
a. Textbook(s) and/or readings: author(s), name, publication date, publisher, and
city/state/country. Include ISBN (when applicable).


Mathematical Interest Theory (second edition), by L. J. Federer Vaaler & J. W.
Daniel, 2009, MAA, Washington, DC, ISBN 978-0-88385-754-0
Derivative Markets (third edition), by R. L. McDonald, 2009, Prentice Hall,
ISPB 978-0321543080
Approved by GCC April 2012; posted summer of 2012
b. Course objectives for the course (student – centered, behavioral focus)
If this is a 5000-level course that is populated by undergraduate and graduate students,
there must be differentiation in the learning objectives expected.
Upon completion of this course, students will be able to:
1. Write an equation of value given a set of cash flows and an interest rate
2. Calculate the value of annuities given level of payments, type(immediate/due), and
interest rates.
3. Calculate the outstanding loan balance at any point in time.
4. Calculate the amount of interest and principal repayment of a loan payment at
any point in time.
5. Given any four of price, redemption value, yield rate, coupon rate, and term of
bond, calculate the remaining term.
6. Evaluate an investor’s margin position based on changes in asset values.
7. Evaluate the payoff and profit of basic derivative contracts.
8. Use the concepts of no-arbitrage to determine the theoretical value of futures and
forwards.
9. Calculate the value of options using binomial model and Black-Scholes formula.
10. Explain and demonstrate how to control risk using the method of delta hedging.
c. Course topic outline
The list of topics should reflect the stated objectives.
1. Growth of money
 Accumulation and amount function
 Simple interest and compound interest
 Simple discount and compound discount
 Force of interest
2. Annuities
 Annuities immediate/due
 Perpetuities
 Non-level annuities
3. Loan repayment
 Amortized loans and amortization schedule
 The sinking fund method
4. Bonds
 Basic bond formula
 The premium-discount formula
 Bond amortization schedule
5. Stocks and financial markets
 Hedging
 Arbitrage
 Futures/forwards/options
6. Valuation of options
 European, American, Exotic options
 Binomial tree method
 Black Scholes Model
Approved by GCC April 2012; posted summer of 2012
d. List of course assignments, weighting of each assignment, and grading/evaluation system
for determining a grade




Quizzes (15%)
3 Tests (3*15=45%)
Homework (10%)
1 Final (30%)
Grade in course:
A: 90% and above
B: 80-89%
C: 70-89%
F: 69% and below
Approved by GCC April 2012; posted summer of 2012