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Financial Engineering-suspended - M.S. PDFDownload to print

Admission to the program is temporarily suspended and will resume by fall 2015 contingent on university approval procedures.

College
Department
Department of Finance

Room 404, Business Administration Building
E-mail: finance@kent.edu
Tel: 330-672-2426
Fax: 330-672-5006
Web: http://www.kent.edu/business/finance/index.cfm
 

Department of Mathematical Sciences

Mathematics and Computer Science Building
E-mail: math@math.kent.edu
Tel: 330-672-2430
Fax: 330-672-2209
Web: www.kent.edu/cas/math

Description

The interdisciplinary Master of Science in Financial Engineering is for those with strong quantitative backgrounds who have career goals of becoming risk management officers, derivatives analysts or traders. The program is rigorous and requires the completion of 36 credit hours of coursework, including an industry-based project. The curriculum meets the guidelines established by the International Association of Financial Engineers.

The Financial Engineering program also partners with the WISE institute at Xiamen University in China to offer a concentration in Financial Engineering Quantitative to students who first enroll at Xiamen for one year. These students take extensive coursework in Fiance, Math and Economics topics to prepare for the program. Since their preparation covers some coursework in the program, they are on a second track or concentration in this degree. Other than these coursework differences, the program is the same.

The program is a demanding one, and requires the completion of 36 credit hours of coursework, including an industry based internship. It combines strong quantitative skills from mathematics, including probability theory and numerical computing, with risk management and dynamic valuation skills from finance. The program emphasizes applied skills in the area of financial engineering, while still providing the necessary theoretical background. The coursework was designed by an industry advisory board of leading investment banks and financial firms. The board works closely with faculty to revise the content regularly. For a list of current MSFE Advisory Board Members please see www.business.kent.edu/msfe.

The on-campus electronic Olga A. Mural Financial Engineering Trading Floor allows students to receive hands-on experience in derivatives trading and risk management. Kent State has the only derivatives-oriented trading floor in an academic institution with direct connections to the futures exchanges. The trading floor is equipped with the same software used by major investment banking firms. Live exchange data feeds and real-time market information allow students to simulate real trading. The software includes Trading Technologies X Trader, Patsystems, and SunGard’s MicroHedge options analytical product. Data feeds from CQG and Reuters provide continuous news and pricing information. At the front of the trading floor is a data board that provides real-time pricing information on derivatives. Students use this information to assess market conditions for trading tendencies. Live satellite feeds are shown on plasma displays.

This unique trading floor is an integral part of the MSFE program at Kent State University. Since students use the same data feeds and trading software that are used by major investment banking firms, the trading floor allows them to replicate dynamic trading strategies and derivative security analyses.

An industry-based internship is assigned. The project will involve direct interaction with a contributing firm. The student will undertake a ten-week internship to complete the required project with a firm from the financial community. The project will be presented to the program faculty for final evaluation. Prior participating firms include the Chicago Board of Trade, Eurex, Prebon Yamane, State Street Research, KeyBank, SunGard, FirstEnergy, Goldman Sachs, and ICAP. Students are given opportunities to network with top industry officials. The class visits both the Chicago and New York financial districts to interact with professionals in the derivatives field.
 

Admission Requirements

Official transcript(s), GMAT or GRE, resume and TOEFL, IELTS, MELAB or PTE, if applicable. Also required for the major but not for the Financial Engineering concentration are a goal statement and three letters of recommendation.

Graduation Requirements

Minimum of 36 total credit hours.



Financial Engineering Quantitative requires a minimum of 32 total credit hours.

 

Program Fee

$3,600/semester

Accreditation

 The Association to Advance Collegiate Schools of Business

ADMISSION TO THE PROGRAM IS TEMPORARILY SUSPENDED


The MSFE program requires the completion of 36 semester hours of coursework. The quantitative prerequisites for students applying to the program are:
  • Calculus: differentials, infinite series, Taylor’s formula, partial derivatives, multiple integrals.Linear Algebra: matrices, vectors, determinants, linear systems of equations, linear independence, bases, eigenvalues, eigenvectors.
  • Ordinary Differential Equations: 1st-order ODEs, solution techniques, initial value problems, exponential growth/decay, logistic model equilibrium, steady state 2nd-order linear constant-coefficient ODEs.
  • Probability: continuous and discrete distributions, multivariate distributions and independence, ordinary and conditional expectations, Central Limit Theorem.
  • Statistics: regression analysis including detection of and solutions to various violations of classic regression assumptions (heteroskedasticity, autocorrelation, multicollinearity and simultaneity).
  • Computer Programming: programming ability in a highlevel language such as C, C++, Fortran (77 or 90/95), Basic, Visual Basic or Matlab.
  • Economics: basic micro- and macroeconomic topics including supply and demand functions, market structure and the role of money.
Qualified students can be conditionally admitted on the basis of completing these summer workshops.


FINANCIAL ENGINEERING PROGRAM REQUIREMENTS (36 credits)
Course Title Credits
ECON 62056 Time Series Analysis 3
FIN 66061 Financial Management I 3

66066 Advanced Security and Investment Theory 3

66075 Legal Aspects of Financial Engineering
3

66080 Derivatives I
3
  66081 Derivatives II 3

66084 Financial Engineering
3
  66085 Fixed Income Markets
3
MATH 50051 Topics in Probability Theory and Stochastic Processes
3
  52091 Seminar: Modeling Projects
3

60070 Financial Mathematics
3

62203 Computational Finance
3
TOTAL 36