Text Recommendation for Exam FM

• Option A
  Mathematics of Investment and Credit (Third Edition), 2004, by Broverman, S.A.
  • Chapter 1 (1.1-1.6)
  • Chapter 2 (2.1-2.4 excluding 2.4.2 and 2.4.3)
  • Chapter 3 (3.1-3.3 excluding pages 188-189)
  • Chapter 4 (4.1- 4.3.1)
  • Chapter 5 (5.1-5.3 excluding 5.1.3, 5.1.4 and 5.3.2)
  • Chapter 6 (6.1-6.3 excluding 6.2)
  • Chapter 7 (7.1- 7.2)
  • Chapter 8 (8.2.1, 8.2.4, 8.3.1-8.3.3)
  Derivatives Markets (Second Edition), 2006 by McDonald, R.
  • Chapter 1 (1.1-1.4)
  • Chapter 2 (2.1-2.6)
  • Chapter 3 (3.1-3.5)
  • Chapter 4 (4.1-4.4)
  • Chapter 5 (5.1-5.4)
  • Chapter 8 (8.1-8.2)
  • Appendices 2A and 5B

• Option B
  Financial Mathematics - A Practical Guide for Actuaries and other Business Professionals (Second Edition), 2005, by C. Ruckman and J. Francis
  • Chapters 1, 2
  • Chapter 3 (3.1-3.7)
  • Chapter 4 (4.2)
  • Chapter 5
  • Chapter 6 (6.1-6.3)
  • Chapter 7 (7.1-7.8)
  • Chapter 8 (8.1-8.3)
  Derivatives Markets (Second Edition), 2006 by McDonald, R.
  • Chapter 1 (1.1-1.4)
  • Chapter 2 (2.1-2.6)
  • Chapter 3 (3.1-3.5)
  • Chapter 4 (4.1-4.4)
  • Chapter 5 (5.1-5.4)
  • Chapter 8 (8.1-8.2)
  • Appendices 2A and 5B.

Knowledge and understanding of financial mathematics concepts are significantly enhanced through working out problems based on those concepts. Thus in preparing for the Financial Mathematics examination, whichever of the source of textbooks students choose to use, students are encouraged to work out the textbook exercises related to the listed readings.