Financial Mathematics for SOA Exam FM / CAS Exam 2

A deck to help actuarial students prepare for SOA Exam FM / CAS Exam 2. It covers terminology, formulas, and important concepts that you need to know for the exam. It does not contain practice problems. All of the cards have been typeset in LaTeX for readability. Note: I created this deck in preparation for the August, 2017 exam, so it only covers the material on that syllabus. I am not planning to update it in response to future curriculum changes, but it should still be useful as a starting point for your own customized deck. References:

Cherry, (2017), a/s/m SOA Exam FM Study Manual, 12th Ed.
Francis & Ruckman, (2016), Interest Theory: Financial Mathematics and Deterministic Asset Valuation.
Kellison, (2009), Interest Theory, 3rd Ed.

Sample Data

Text	[latex]Interest rate swap, \emph{constant} notional value:\[R = \frac{ {{c1::1-P_n}} }{\sum {{c2::P_t}} }\][/latex]
Extra	[latex]\begin{itemize}\item $R$ is the swap rate\item $P_t$ is the price of a $t$-year zero-coupon bond\end{itemize}[/latex]
Tags	Interest_Rate_Swaps

Text	[latex]Amount for accumulation of discount:\[P_t = ({{c1::Ci - Fr}}) {{c2::v^{n - t + 1} }}\][/latex]
Extra
Tags	Bonds

Front	[latex]What does $\ax**[k\|]{\angl{\infty} i}$ denote?[/latex]
Back	[latex]The present value of a $k$-years \emph{deferred} perpetuity-due at effective rate $i$.[/latex]
Tags	Annuities Annuities_Perpetuity