Mathematics 483, Mathematical Models in Finance and Investments, Fall 2022
Illinois State University Mathematics Department
All class materials are available on Reggienet


• Dr. Krzysztof Ostaszewski, FSA, CERA, FSAS, CFA, MAAA, Actuarial Program Director
Office: Stevenson Hall room 313G. Office telephone: 309-438-7226, office fax: 309-438-5866. E-mail:
We will also have the following visiting instructor who will not hold office hours:

• Mr. Robert Gomez, FSA, Actuary, State Farm Insurance Companies. E-mail:

Classes Meet
Tuesdays and Thursdays 6:00-7:50 p.m. (with a ten minute break), in Stevenson Hall room 324, or online, via Zoom (depending on circumstances, students will be kept informed, but even for live classes, Zoom access will be provided to all students). Information about Zoom access has been sent to all students enrolled in the class. If you experience any trouble accessing the class using Zoom, call Dr. Ostaszewski immediately.
Office Hours
Office hours will be held by Dr. Krzysztof Ostaszewski by appointment through Zoom at: Appointments with Dr. Krzysztof Ostaszewski should be scheduled at: E-mail or call Dr. Krzysztof Ostaszewski if you need help quickly.

There will be study notes, practice exams, and optional readings for presentation in class provided by Dr. Krzysztof Ostaszewski  in Reggienet.
The following textbooks are suggested, but not required:

• Financial Risk Management for Pension Plans by Leslaw Gajek and Krzysztof Ostaszewski, Elsevier Science, 2004. This book is on reserve at the Milner Library at Illinois State University and on reserve at the library of the Department of Mathematics. This book will also be available through the Milner library in an online form at:

• Financial Economics, edited by Harry Panjer, published in 1998 by the Actuarial Foundation. This book is on reserve at the Milner Library at Illinois State University.
• Zvi Bodie, Alex Kane, and Alan J. Marcus, Investments, 11th edition, McGraw-Hill, 2018, ISBN 978-1259277177.
• John Hull, Options, Futures and Other Derivatives, 10th Edition, Pearson, 2017, ISBN: 978-0134472089.

Students can earn extra credit for making presentations in class and for discussions in class on advanced readings, mostly related to the Society of Actuaries Quantitative Finance and Investment Track Fellowship exams, and to the Casualty Actuarial Society Course 9 Examination on Financial Risk and Rate of Return. Some potential readings for presentation are provided in the class online platform, in Reggienet.

The objective of this class is to help you learn about mathematical models in finance and investments, as utilized in the management as well as financial supervision of insurance enterprises and other financial intermediaries.
There will be a total of six tests. Any of the comprehensive tests (as indicated in the schedule) can count as a final. Because there will be many opportunities for testing and only the best three scores will affect the class grade (but with the opportunity for extra credit for two more tests), no make-up tests will be offered. The final will count as 40% of your grade, and the best two of the remaining tests will count as 30% of your grade each. You will also receive up to 10% extra credit for the best two (each) of the remaining tests. The grading scale for will be as follows: 90% or better -- A, 80% to 90% -- B, 70% to 80% -- C, 60% to 70% -- D, below 60% -- F.  Past professional examinations can also serve as a guidance of what kind of material students can expect on the tests. You can find past Society of Actuaries examinations at:, and past Casualty Actuarial Society examinations at: However, the tests in this class will be quantitative only, no essay questions will be given. Even though questions will be quantitative only, students are encouraged to explain their work thoroughly. Students will also have an opportunity to earn extra credit by making presentations in class on the readings suggested in Reggienet or other readings from Fellowship level examinations of the Society of Actuaries or the Casualty Actuarial Society. Those presentations must be set well in advance with Dr. Ostaszewski, and presentations scheduled at the last minuted before the end of the semester may be denied.

All tests in the class will be either live tests or be given online, and you will be informed about the nature of  each test before it. Note that use of a webcam by each student may be required for tests in this class that will be given online. Note that you may need to go through Onboarding Test before the real online test.

Class attendance
While this class does not have a strict formal attendance requirement, students who actively participate in class, and make a significant contribution may be granted extra credit. You are expected to attend classes and be involved in the learning process. If you must miss class due to an extended illness (3 or more consecutive class days) or bereavement, the Student Health Services and the Dean of Students Office can help. Please note this university policy: Excused Student Absences Due to Communicable Disease. 

Important dates
Illinois State University withdrawal information for the Fall 2022 semester is given at the University Registrar site.

Student Access and Accommodation Services
Any student needing to arrange a reasonable accommodation for a documented disability and/or medical/mental health condition should contact Student Access and Accommodation Service at 350 Fell Hall, (309) 438-5853, or visit the website at

No recording of this class is allowed
Students may not photograph or use audio or video devices to record classroom lectures or discussions or visual materials that accompany them (e.g., lecture slides, whiteboard notes/equations). Students with disabilities who need to record classroom lectures or discussions must contact Student Access and Accommodation Services to register, request and be approved for an accommodation. Students who violate this policy may be subject to both legal sanctions for violations of copyright law and disciplinary action under the University’s Code of Student Conduct.

Schedule of classes