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Program Type: 
Non Thesis
Course Code: 
FE 503
Semester: 
Autumn
P: 
3
Lab: 
0
Credits: 
3
ECTS: 
10
Course Language: 
English
Course Content: 

Overview of optimization issues; optimization problems in finance and economics, profit maximization conditions, Lagrange multipliers, optimal timing (wine storage problem, a tree cutting problem, maximization conditions), peak-load pricing, Shephard's Lemma, Economic Dynamics and Integral Calculus, Expected value calculation in stochastic models, Ito's lemma, Black-Scholes derivative pricing models, Excel applications (optimization in imperfectly competitive markets)

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