{"product_id":"fundamentals-of-actuarial-mathematics-isbn-9781118782460","title":"Fundamentals of Actuarial Mathematics","description":"\u003cul\u003e \u003cli\u003eProvides a comprehensive coverage of both the deterministic and stochastic models of life contingencies, risk theory, credibility theory, multi-state models, and an introduction to modern mathematical finance.\u003c\/li\u003e \u003c\/ul\u003e \u003cul\u003e \u003cli\u003eNew edition restructures the material to fit into modern computational methods and provides several spreadsheet examples throughout.\u003c\/li\u003e \u003c\/ul\u003e \u003cul\u003e \u003cli\u003eCovers the syllabus for the Institute of Actuaries subject CT5, Contingencies\u003c\/li\u003e \u003c\/ul\u003e \u003cul\u003e \u003cli\u003eIncludes new chapters covering stochastic investments returns, universal life insurance. Elements of option pricing and the Black-Scholes formula will be introduced.\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003ePreface xvii\u003c\/p\u003e \u003cp\u003eAcknowledgements xxi\u003c\/p\u003e \u003cp\u003eNotation index xxiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I THE DETERMINISTIC LIFE CONTINGENCIES MODEL 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction and motivation 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Risk and insurance 3\u003c\/p\u003e \u003cp\u003e1.2 Deterministic versus stochastic models 4\u003c\/p\u003e \u003cp\u003e1.3 Finance and investments 5\u003c\/p\u003e \u003cp\u003e1.4 Adequacy and equity 5\u003c\/p\u003e \u003cp\u003e1.5 Reassessment 6\u003c\/p\u003e \u003cp\u003e1.6 Conclusion 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The basic deterministic model 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Cash flows 7\u003c\/p\u003e \u003cp\u003e2.2 An analogy with currencies 8\u003c\/p\u003e \u003cp\u003e2.3 Discount functions 9\u003c\/p\u003e \u003cp\u003e2.4 Calculating the discount function 11\u003c\/p\u003e \u003cp\u003e2.5 Interest and discount rates 12\u003c\/p\u003e \u003cp\u003e2.6 Constant interest 12\u003c\/p\u003e \u003cp\u003e2.7 Values and actuarial equivalence 13\u003c\/p\u003e \u003cp\u003e2.8 Vector notation 17\u003c\/p\u003e \u003cp\u003e2.9 Regular pattern cash flows 18\u003c\/p\u003e \u003cp\u003e2.10 Balances and reserves 20\u003c\/p\u003e \u003cp\u003e2.11 Time shifting and the splitting identity 26\u003c\/p\u003e \u003cp\u003e2.11 Change of discount function 27\u003c\/p\u003e \u003cp\u003e2.12 Internal rates of return 28\u003c\/p\u003e \u003cp\u003e2.13 Forward prices and term structure 30\u003c\/p\u003e \u003cp\u003e2.14 Standard notation and terminology 33\u003c\/p\u003e \u003cp\u003e2.15 Spreadsheet calculations 34\u003c\/p\u003e \u003cp\u003eNotes and references 35\u003c\/p\u003e \u003cp\u003eExercises 35\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 The life table 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Basic definitions 39\u003c\/p\u003e \u003cp\u003e3.2 Probabilities 40\u003c\/p\u003e \u003cp\u003e3.3 Constructing the life table from the values of q\u003csub\u003ex\u003c\/sub\u003e 41\u003c\/p\u003e \u003cp\u003e3.4 Life expectancy 42\u003c\/p\u003e \u003cp\u003e3.5 Choice of life tables 44\u003c\/p\u003e \u003cp\u003e3.6 Standard notation and terminology 44\u003c\/p\u003e \u003cp\u003e3.7 A sample table 45\u003c\/p\u003e \u003cp\u003eNotes and references 45\u003c\/p\u003e \u003cp\u003eExercises 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Life annuities 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Introduction 47\u003c\/p\u003e \u003cp\u003e4.2 Calculating annuity premiums 48\u003c\/p\u003e \u003cp\u003e4.3 The interest and survivorship discount function 50\u003c\/p\u003e \u003cp\u003e4.4 Guaranteed payments 53\u003c\/p\u003e \u003cp\u003e4.5 Deferred annuities with annual premiums 55\u003c\/p\u003e \u003cp\u003e4.6 Some practical considerations 56\u003c\/p\u003e \u003cp\u003e4.7 Standard notation and terminology 57\u003c\/p\u003e \u003cp\u003e4.8 Spreadsheet calculations 58\u003c\/p\u003e \u003cp\u003eExercises 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Life insurance 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Introduction 61\u003c\/p\u003e \u003cp\u003e5.2 Calculating life insurance premiums 61\u003c\/p\u003e \u003cp\u003e5.3 Types of life insurance 64\u003c\/p\u003e \u003cp\u003e5.4 Combined insurance–annuity benefits 64\u003c\/p\u003e \u003cp\u003e5.5 Insurances viewed as annuities 69\u003c\/p\u003e \u003cp\u003e5.6 Summary of formulas 70\u003c\/p\u003e \u003cp\u003e5.7 A general insurance–annuity identity 70\u003c\/p\u003e \u003cp\u003e5.8 Standard notation and terminology 72\u003c\/p\u003e \u003cp\u003e5.9 Spreadsheet applications 74\u003c\/p\u003e \u003cp\u003eExercises 74\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Insurance and annuity reserves 78\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Introduction to reserves 78\u003c\/p\u003e \u003cp\u003e6.2 The general pattern of reserves 81\u003c\/p\u003e \u003cp\u003e6.3 Recursion 82\u003c\/p\u003e \u003cp\u003e6.4 Detailed analysis of an insurance or annuity contract 83\u003c\/p\u003e \u003cp\u003e6.5 Bases for reserves 87\u003c\/p\u003e \u003cp\u003e6.6 Nonforfeiture values 88\u003c\/p\u003e \u003cp\u003e6.7 Policies involving a return of the reserve 88\u003c\/p\u003e \u003cp\u003e6.8 Premium difference and paid-up formulas 90\u003c\/p\u003e \u003cp\u003e6.9 Standard notation and terminology 91\u003c\/p\u003e \u003cp\u003e6.10 Spreadsheet applications 93\u003c\/p\u003e \u003cp\u003eExercises 94\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Fractional durations 98\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Introduction 98\u003c\/p\u003e \u003cp\u003e7.2 Cash flows discounted with interest only 99\u003c\/p\u003e \u003cp\u003e7.3 Life annuities paid\u003c\/p\u003e \u003cp\u003e7.4 Immediate annuities 104\u003c\/p\u003e \u003cp\u003e7.5 Approximation and computation 105\u003c\/p\u003e \u003cp\u003e7.6 Fractional period premiums and reserves 106\u003c\/p\u003e \u003cp\u003e7.7 Reserves at fractional durations 107\u003c\/p\u003e \u003cp\u003e7.8 Standard notation and terminology 109\u003c\/p\u003e \u003cp\u003eExercises 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Continuous payments 112\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Introduction to continuous annuities 112\u003c\/p\u003e \u003cp\u003e8.2 The force of discount 113\u003c\/p\u003e \u003cp\u003e8.3 The constant interest case 114\u003c\/p\u003e \u003cp\u003e8.4 Continuous life annuities 115\u003c\/p\u003e \u003cp\u003e8.5 The force of mortality 118\u003c\/p\u003e \u003cp\u003e8.6 Insurances payable at the moment of death 119\u003c\/p\u003e \u003cp\u003e8.7 Premiums and reserves 122\u003c\/p\u003e \u003cp\u003e8.8 The general insurance–annuity identity in the continuous case 123\u003c\/p\u003e \u003cp\u003e8.9 Differential equations for reserves 124\u003c\/p\u003e \u003cp\u003e8.10 Some examples of exact calculation 125\u003c\/p\u003e \u003cp\u003e8.11 Further approximations from the life table 129\u003c\/p\u003e \u003cp\u003e8.12 Standard actuarial notation and terminology 131\u003c\/p\u003e \u003cp\u003eNotes and references 132\u003c\/p\u003e \u003cp\u003eExercises 132\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Select mortality 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Introduction 137\u003c\/p\u003e \u003cp\u003e9.2 Select and ultimate tables 138\u003c\/p\u003e \u003cp\u003e9.3 Changes in formulas 139\u003c\/p\u003e \u003cp\u003e9.4 Projections in annuity tables 141\u003c\/p\u003e \u003cp\u003e9.5 Further remarks 142\u003c\/p\u003e \u003cp\u003eExercises 142\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Multiple-life contracts 144\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Introduction 144\u003c\/p\u003e \u003cp\u003e10.2 The joint-life status 144\u003c\/p\u003e \u003cp\u003e10.3 Joint-life annuities and insurances 146\u003c\/p\u003e \u003cp\u003e10.4 Last-survivor annuities and insurances 147\u003c\/p\u003e \u003cp\u003e10.5 Moment of death insurances 149\u003c\/p\u003e \u003cp\u003e10.6 The general two-life annuity contract 150\u003c\/p\u003e \u003cp\u003e10.7 The general two-life insurance contract 152\u003c\/p\u003e \u003cp\u003e10.8 Contingent insurances 153\u003c\/p\u003e \u003cp\u003e10.9 Duration problems 156\u003c\/p\u003e \u003cp\u003e10.10 Applications to annuity credit risk 159\u003c\/p\u003e \u003cp\u003e10.11 Standard notation and terminology 160\u003c\/p\u003e \u003cp\u003e10.12 Spreadsheet applications 161\u003c\/p\u003e \u003cp\u003eNotes and references 161\u003c\/p\u003e \u003cp\u003eExercises 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Multiple-decrement theory 166\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Introduction 166\u003c\/p\u003e \u003cp\u003e11.2 The basic model 166\u003c\/p\u003e \u003cp\u003e11.3 Insurances 169\u003c\/p\u003e \u003cp\u003e11.4 Determining the model from the forces of decrement 170\u003c\/p\u003e \u003cp\u003e11.5 The analogy with joint-life statuses 171\u003c\/p\u003e \u003cp\u003e11.6 A machine analogy 171\u003c\/p\u003e \u003cp\u003e11.7 Associated single-decrement tables 175\u003c\/p\u003e \u003cp\u003eNotes and references 181\u003c\/p\u003e \u003cp\u003eExercises 181\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Expenses and Profits 184\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Introduction 184\u003c\/p\u003e \u003cp\u003e12.2 Effect on reserves 186\u003c\/p\u003e \u003cp\u003e12.3 Realistic reserve and balance calculations 187\u003c\/p\u003e \u003cp\u003e12.4 Profit measurement 189\u003c\/p\u003e \u003cp\u003eNotes and references 196\u003c\/p\u003e \u003cp\u003eExercises 196\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Specialized topics 199\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Universal life 199\u003c\/p\u003e \u003cp\u003e13.2 Variable annuities 203\u003c\/p\u003e \u003cp\u003e13.3 Pension plans 204\u003c\/p\u003e \u003cp\u003eExercises 207\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II THE STOCHASTIC LIFE CONTINGENCIES MODEL 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Survival distributions and failure times 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Introduction to survival distributions 211\u003c\/p\u003e \u003cp\u003e14.2 The discrete case 212\u003c\/p\u003e \u003cp\u003e14.3 The continuous case 213\u003c\/p\u003e \u003cp\u003e14.4 Examples 215\u003c\/p\u003e \u003cp\u003e14.5 Shifted distributions 216\u003c\/p\u003e \u003cp\u003e14.6 The standard approximation 217\u003c\/p\u003e \u003cp\u003e14.7 The stochastic life table 219\u003c\/p\u003e \u003cp\u003e14.8 Life expectancy in the stochastic model 220\u003c\/p\u003e \u003cp\u003e14.9 Stochastic interest rates 221\u003c\/p\u003e \u003cp\u003eNotes and references 222\u003c\/p\u003e \u003cp\u003eExercises 222\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 The stochastic approach to insurance and annuities 224\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Introduction 224\u003c\/p\u003e \u003cp\u003e15.2 The stochastic approach to insurance benefits 225\u003c\/p\u003e \u003cp\u003e15.3 The stochastic approach to annuity benefits 229\u003c\/p\u003e \u003cp\u003e15.4 Deferred contracts 233\u003c\/p\u003e \u003cp\u003e15.5 The stochastic approach to reserves 233\u003c\/p\u003e \u003cp\u003e15.6 The stochastic approach to premiums 235\u003c\/p\u003e \u003cp\u003e15.7 The variance of \u003csub\u003er\u003c\/sub\u003eL 241\u003c\/p\u003e \u003cp\u003e15.8 Standard notation and terminology 243\u003c\/p\u003e \u003cp\u003eNotes and references 244\u003c\/p\u003e \u003cp\u003eExercises 244\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Simplifications under level benefit contracts 248\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Introduction 248\u003c\/p\u003e \u003cp\u003e16.2 Variance calculations in the continuous case 248\u003c\/p\u003e \u003cp\u003e16.3 Variance calculations in the discrete case 250\u003c\/p\u003e \u003cp\u003e16.4 Exact distributions 252\u003c\/p\u003e \u003cp\u003e16.5 Some non-level benefit examples 254\u003c\/p\u003e \u003cp\u003eExercises 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 The minimum failure time 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 Introduction 259\u003c\/p\u003e \u003cp\u003e17.2 Joint distributions 259\u003c\/p\u003e \u003cp\u003e17.3 The distribution of \u003ci\u003eT\u003c\/i\u003e 261\u003c\/p\u003e \u003cp\u003e17.4 The joint distribution of (\u003ci\u003eT,J\u003c\/i\u003e) 261\u003c\/p\u003e \u003cp\u003e17.5 Other problems 270\u003c\/p\u003e \u003cp\u003e17.6 The common shock model 271\u003c\/p\u003e \u003cp\u003e17.7 Copulas 273\u003c\/p\u003e \u003cp\u003eNotes and references 276\u003c\/p\u003e \u003cp\u003eExercises 276\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III ADVANCED STOCHASTIC MODELS 279\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 An introduction to stochastic processes 281\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Introduction 281\u003c\/p\u003e \u003cp\u003e18.2 Markov chains 283\u003c\/p\u003e \u003cp\u003e18.3 Martingales 286\u003c\/p\u003e \u003cp\u003e18.4 Finite-state Markov chains 287\u003c\/p\u003e \u003cp\u003e18.5 Introduction to continuous time processes 293\u003c\/p\u003e \u003cp\u003e18.6 Poisson processes 293\u003c\/p\u003e \u003cp\u003e18.7 Brownian motion 295\u003c\/p\u003e \u003cp\u003eNotes and references 299\u003c\/p\u003e \u003cp\u003eExercises 300\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Multi-state models 304\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e19.1 Introduction 304\u003c\/p\u003e \u003cp\u003e19.2 The discrete-time model 305\u003c\/p\u003e \u003cp\u003e19.3 The continuous-time model 311\u003c\/p\u003e \u003cp\u003e19.4 Recursion and differential equations for multi-state reserves 324\u003c\/p\u003e \u003cp\u003e19.5 Profit testing in multi-state models 327\u003c\/p\u003e \u003cp\u003e19.6 Semi-Markov models 328\u003c\/p\u003e \u003cp\u003eNotes and references 328\u003c\/p\u003e \u003cp\u003eExercises 329\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Introduction to the Mathematics of Financial Markets 333\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Introduction 333\u003c\/p\u003e \u003cp\u003e20.2 Modelling prices in financial markets 333\u003c\/p\u003e \u003cp\u003e20.3 Arbitrage 334\u003c\/p\u003e \u003cp\u003e20.4 Option contracts 337\u003c\/p\u003e \u003cp\u003e20.5 Option prices in the one-period binomial model 339\u003c\/p\u003e \u003cp\u003e20.6 The multi-period binomial model 342\u003c\/p\u003e \u003cp\u003e20.7 American options 346\u003c\/p\u003e \u003cp\u003e20.8 A general financial market 348\u003c\/p\u003e \u003cp\u003e20.9 Arbitrage-free condition 351\u003c\/p\u003e \u003cp\u003e20.10 Existence and uniqueness of risk neutral measures 353\u003c\/p\u003e \u003cp\u003e20.11 Completeness of markets 358\u003c\/p\u003e \u003cp\u003e20.12 The Black–Scholes–Merton formula 361\u003c\/p\u003e \u003cp\u003e20.13 Bond markets 364\u003c\/p\u003e \u003cp\u003eNotes and references 372\u003c\/p\u003e \u003cp\u003eExercises 373\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV RISK THEORY 375\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Compound distributions 377\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21.1 Introduction 377\u003c\/p\u003e \u003cp\u003e21.2 The mean and variance of \u003ci\u003eS\u003c\/i\u003e 379\u003c\/p\u003e \u003cp\u003e21.3 Generating functions 380\u003c\/p\u003e \u003cp\u003e21.4 Exact distribution of \u003ci\u003eS\u003c\/i\u003e 381\u003c\/p\u003e \u003cp\u003e21.5 Choosing a frequency distribution 381\u003c\/p\u003e \u003cp\u003e21.6 Choosing a severity distribution 383\u003c\/p\u003e \u003cp\u003e21.7 Handling the point mass at \u003ci\u003e0\u003c\/i\u003e 384\u003c\/p\u003e \u003cp\u003e21.8 Counting claims of a particular type 385\u003c\/p\u003e \u003cp\u003e21.9 The sum of two compound Poisson distributions 387\u003c\/p\u003e \u003cp\u003e21.10 Deductibles and other modifications 388\u003c\/p\u003e \u003cp\u003e21.11 A recursion formula for \u003ci\u003eS\u003c\/i\u003e 393\u003c\/p\u003e \u003cp\u003eNotes and references 398\u003c\/p\u003e \u003cp\u003eExercises 398\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Risk assessment 403\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e22.1 Introduction 403\u003c\/p\u003e \u003cp\u003e22.2 Utility theory 403\u003c\/p\u003e \u003cp\u003e22.3 Convex and concave functions: Jensen’s inequality 406\u003c\/p\u003e \u003cp\u003e22.4 A general comparison method 408\u003c\/p\u003e \u003cp\u003e22.5 Risk measures for capital adequacy 412\u003c\/p\u003e \u003cp\u003eNotes and references 417\u003c\/p\u003e \u003cp\u003eExercises 417\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 Ruin models 420\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e23.1 Introduction 420\u003c\/p\u003e \u003cp\u003e23.2 A functional equation approach 422\u003c\/p\u003e \u003cp\u003e23.3 The martingale approach to ruin theory 424\u003c\/p\u003e \u003cp\u003e23.4 Distribution of the deficit at ruin 433\u003c\/p\u003e \u003cp\u003e23.5 Recursion formulas 434\u003c\/p\u003e \u003cp\u003e23.6 The compound Poisson surplus process 438\u003c\/p\u003e \u003cp\u003e23.7 The maximal aggregate loss 441\u003c\/p\u003e \u003cp\u003eNotes and references 445\u003c\/p\u003e \u003cp\u003eExercises 445\u003c\/p\u003e \u003cp\u003e\u003cb\u003e24 Credibility theory 449\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e24.1 Introductory material 449\u003c\/p\u003e \u003cp\u003e24.2 Conditional expectation and variance with respect to another random variable 453\u003c\/p\u003e \u003cp\u003e24.3 General framework for Bayesian credibility 457\u003c\/p\u003e \u003cp\u003e24.4 Classical examples 459\u003c\/p\u003e \u003cp\u003e24.5 Approximations 462\u003c\/p\u003e \u003cp\u003e24.6 Conditions for exactness 465\u003c\/p\u003e \u003cp\u003e24.7 Estimation 469\u003c\/p\u003e \u003cp\u003eNotes and References 473\u003c\/p\u003e \u003cp\u003eExercises 473\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAppendix A review of probability theory 477\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA.1 Sample spaces and probability measures 477\u003c\/p\u003e \u003cp\u003eA.2 Conditioning and independence 479\u003c\/p\u003e \u003cp\u003eA.3 Random variables 479\u003c\/p\u003e \u003cp\u003eA.4 Distributions 480\u003c\/p\u003e \u003cp\u003eA.5 Expectations and moments 481\u003c\/p\u003e \u003cp\u003eA.6 Expectation in terms of the distribution function 482\u003c\/p\u003e \u003cp\u003eA.7 Joint distributions 483\u003c\/p\u003e \u003cp\u003eA.8 Conditioning and independence for random variables 485\u003c\/p\u003e \u003cp\u003eA.9 Moment generating functions 486\u003c\/p\u003e \u003cp\u003eA.10 Probability generating functions 487\u003c\/p\u003e \u003cp\u003eA.11 Some standard distributions 489\u003c\/p\u003e \u003cp\u003eA.12 Convolution 495\u003c\/p\u003e \u003cp\u003eA.13 Mixtures 499\u003c\/p\u003e \u003cp\u003eAnswers to exercises 501\u003c\/p\u003e \u003cp\u003eReferences 517\u003c\/p\u003e \u003cp\u003eIndex 523\u003c\/p\u003e  \u003cp\u003eS. David Promislow is the author of Fundamentals of Actuarial Mathematics, 3rd Edition, published by Wiley.   \u003c\/p\u003e\u003cp\u003e\u003ci\u003eFundamentals of Actuarial Mathematics\u003c\/i\u003e provides a comprehensive coverage of both the deterministic and stochastic models of life contingencies, risk theory, credibility theory, multi-state models and an introduction to modern mathematical finance.\u003cbr\u003e \u003ci\u003e\u003cbr\u003e This new edition:\u003c\/i\u003e\u003c\/p\u003e \u003cul\u003e \u003cli\u003eProvides an introduction to the mathematics of financial markets, exploring options, risk-neutral evaluation, the fundamental theorem of asset pricing and the Black-Scholes formula.\u003c\/li\u003e \u003cli\u003eProvides coverage of profit testing.\u003c\/li\u003e \u003cli\u003ePresents more in-depth coverage of continuous-time multi-state theory.\u003c\/li\u003e \u003cli\u003eCovers all of the syllabus material on the current life contingencies examinations of the Society of Actuaries, Canadian Institute of Actuaries and the Casualty Actuarial Society (SOA-CIA exams MLC, CSA exam LC), as well as much of the material for SOA-CIA exam C, CAS exam 4, and the British Institute of Actuaries exam CT5.\u003c\/li\u003e \u003cli\u003eContains a variety of exercises, both computational and theoretical, together with answers, enabling use for self-study. \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eFundamentals of Actuarial Mathematics, 3rd Edition\u003c\/i\u003e is the ideal text for students planning for a professional career as actuaries, providing a solid preparation for the modelling examinations of major actuarial associations. It also serves as a highly suitable reference for those wanting a sound introduction to the subject, and for those working in insurance, annuities and pensions.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989255962853,"sku":"NP9781118782460","price":76.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118782460.jpg?v=1761783401","url":"https:\/\/k12savings.com\/es\/products\/fundamentals-of-actuarial-mathematics-isbn-9781118782460","provider":"K12savings","version":"1.0","type":"link"}