UNIVERSITY OF ILLINOIS AT URBANACHAMPAIGN
Actuarial Science Program
DEPARTMENT OF MATHEMATICS
Math 370 Z
Actuarial Problem Solving
Fall, 2011 245 Altgeld Hall 7:008:30 pm Tuesday Starting Sep. 6 12 Lectures in Total 

Office Hours: By appointment Email: actuarialillinois@gmail.com 
Course web page: https://faculty.math.illinois.edu/~fengzhu2/Math370Z.htm
Course Overview
This course serves as a preparation/review for the actuarial exam FM/2.
You can take it for credit (one hour), or just sit in without registering (no
prior approval needed). With or without registration, you can get (if you want)
your quizzes scored.
This course will cover both theory of interest and derivatives material,
corresponding to the MATH 210 and to the exam FM/2 syllabus. I will briefly
review the relevant concepts and formulas, but the majority of the time will be
devoted to working actuarial exam problems.
Required Text
There is no required text, though you should have a basic financial
mathematics/derivatives text available for reference; commercial test
preparation manuals are advised, but not necessary for this class. Handouts,
notes, quizzes and solutions will be posted on course web page.
Accessibility Statement
To insure
that disabilityrelated concerns are properly addressed throughout the
semester, students with disabilities who require reasonable accommodations to
participate in this class are asked to contact me within the first two weeks of
class.
About Calculators
You may
use only the SOA/CAS approved calculators listed below.
Inclass
examples will be made with BA II Plus
or TI30XS Multi View.
BA35
TI30Xa
BA II
Plus
TI30XIIS
TI30XIIB
TI30XS
Multi View
TI30XB
Multi View
BA II Plus Professional Edition
Grading
Grading for this course is on an S/U (Satisfactory/Unsatisfactory)
basis.
There will be no homework or final exam for this class, but we
would have a quiz at the end of each lecture. These quizzes will be similar in
format and difficulty to the actuarial exams.
To get "S" credit, you need to
a) Attend at least 9 of the 12 lectures, OR
b) Score 75% or
above on at least 6 of the 12 inclass quizzes.
There will be no makeup quiz.
Resources
Lecture
1 Sep.6 
Rates of Interest & Interest Force 
APR includes more than interest! 
Lecture
2 Sep.13 
Annuities & Perpetuities Part I 

Lecture
3 Sep.20 
Annuities & Perpetuities Part II 

Lecture
4 Sep.27 
More General Annuities 

Lecture 5 Oct. 4 
Yield Rates 

Lecture 6 Oct.
18 
Loan Repayment 

Lecture 7 Oct.
25 
Bonds and Common Stock 

Lecture 8 Nov. 1 
Financial Analysis 

Lecture 9 Nov. 8 
Derivatives 

Lecture 10 Nov.15 
PutCall Parity Combining Options 

Lecture 11 Nov.
29 
Swaps 

Lecure
12 
Review 



