ACS 654Stochastic Modeling and its applications

This course introduces students to the continuoustime models that underpin modern financial theory, with a focus on stochastic calculus and its applications. Students will develop a rigorous understanding of Brownian motion, Ito’s Lemma, stochastic differential equations (SDEs), and the Black-Scholes framework. The course emphasizes both the theoretical foundations and real-world applications to option pricing, risk management, and portfolio optimization. ACS International Financial Reporting for Actuaries (3.0); 3 cr. This course explores the evolving role of actuaries in financial reporting, focusing on the principles and applications of IFRS 17 for insurance contracts. Students will examine key reporting components such as risk adjustment, contract boundaries, revenue recognition, and insurance service results. The course also covers financial statement construction, including the integration of actuarial inputs into income statements and balance sheets.