Fundamentals of Actuarial Mathematics provides a comprehensive coverage of both the deterministic and stochastic models of life contingencies, risk theory, credibility theory, multi-state models and an introduction to modern mathematical finance.

This new edition:

• Provides an introduction to the mathematics of financial markets, exploring options, risk-neutral evaluation, the fundamental theorem of asset pricing and the Black-Scholes formula.
• Provides coverage of profit testing.
• Presents more in-depth coverage of continuous-time multi-state theory.
• Covers all of the syllabus material on the current life contingencies examinations of the Society of Actuaries, Canadian Institute of Actuaries and the Casualty Actuarial Society (SOA-CIA exams MLC, CSA exam LC), as well as much of the material for SOA-CIA exam C, CAS exam 4, and the British Institute of Actuaries exam CT5.
• Contains a variety of exercises, both computational and theoretical, together with answers, enabling use for self-study. 

Fundamentals of Actuarial Mathematics, 3rd Edition is the ideal text for students planning for a professional career as actuaries, providing a solid preparation for the modelling examinations of major actuarial associations. It also serves as a highly suitable reference for those wanting a sound introduction to the subject, and for those working in insurance, annuities and pensions.