BS in Financial Engineering

Financial engineering is the application of mathematical methods used to solve problems in finance. It relies on tools from applied mathematics, computer science, statistics, econometrics, and computational theory in order to build complex models and algorithms to optimize financial decisions. Investment banks, commercial banks, hedge funds, insurance companies, mutual funds, and many other financial institutions employ financial engineers. These businesses apply the methods of financial engineering to such problems as financial securitization, derivative securities valuation, portfolio structuring, risk management, and scenario simulation.

As the speed of financial innovation and technology accelerates, the need for highly qualified people with specific training in financial engineering continues to grow in all financial markets and institutions.

The degree prepares students as well for further graduate studies and professional certification programs like for example CFA, CFT, and FRM.


 
 
TOTAL REQUIRED CREDITS FOR GRADUATION (105 credits)
COLLEGE REQUIREMENTS (21 credits)
CODE DESCRIPTION PREREQUISITE CR.
CSI 200 Computer Literacy ENG 000
3
ENG 201 Composition & Rhetoric I ENG 100 OR ENG 200
3
ENG 202 Composition & Rhetoric II ENG 201
3
ENG 205 English Communication Skills ENG 202
3
HMS 201 Active Learning & Research Methodology ENG 001
3
HMS 301 Western Civilization ENG 201
3
MAT 201 Calculus I MAT 100 OR MAT 200 OR MAT200X OR MAT 100X OR MAT 106 OR PLACEMENT
3
FREE ELECTIVES (3 credits)
CODE DESCRIPTION PREREQUISITE CR.
ENG 200 Writing Skills ENG 001
3
BUSINESS REQUIREMENTS (33 credits)
CODE DESCRIPTION PREREQUISITE CR.
ACC 201 Principles Of Accounting I ENG 001
3
ACC201P Problem-Solving for Principles of Accounting I NONE
0
ACC 202 Principles Of Accounting II ACC 201 & (ENG 100 OR ENG 200 OR ENG 105)
3
ACC202P Problem-Solving for Principles of Accounting II NONE
0
ECO 201 Introduction To Microeconomics ENG 100 OR ENG 200 OR ENG 105
3
ECO 202 Introduction To Macroeconomics ENG 100 OR ENG 200 OR ENG 105
3
FIN 301 Finance I ACC 202 & MAT 220
3
FIN301P Problem-Solving for Finance I NONE
0
MGT 210 Management Principles ENG 100 OR ENG 200 OR ENG 105
3
MGT210P Case Study for BMGT Principles NONE
0
MGT 330 Business Law I ENG 201 & (MGT 210 OR HOM 210)
3
MIS 305 Management Information Systems I CSI 201 OR (CSI 200 & MGT 210) OR (TTM 202 & CSI 200) OR (CSI 200 & HOM 210)
3
MKT 201 Principles Of Marketing ENG 100 OR ENG 200 OR ENG 105
3
MKT201P Case Studies for Principles of Marketing NONE
0
STA 210 Statistics & Probability For Business I (ENG 100 OR ENG 200 OR ENG 105) & MAT200X OR MAT100X
3
STA 310 Statistics & Probability For Business II (ENG 100 OR ENG 200 OR ENG 105) & STA 210
3
MAJOR REQUIREMENTS (45 credits)
CODE DESCRIPTION PREREQUISITE CR.
BUS 300 Business Computing Junior Standing
1
FEN 397 Internship in Financial Engineering Junior Standing
1
FEN 398 Senior Project Proposal in Financial Engineering Junior Standing
1
FEN 499 Senior Project in Financial Engineering Senior Standing
3
FIN 312 Quantitative Methods for Finance STA 310
3
FIN 317 Programming for Financial Applications CSI 200
3
FIN 350 Financial Markets & Institutions FIN 301
3
FIN 371 Valuation and Risk Management of Fixed Income Securities FIN 350
3
FIN 403 Contemporary Corporate Finance FIN 350 OR ACC 303
3
FIN 405 Investment & Porftolio Analysis FIN 402
3
FIN 406 Financial Modeling & Analysis BUS 300
3
FIN 414 Econometrics and Computing techniques STA 310 & ECO 201 & MAT 220
3
FIN 420 Financial Derivatives FIN 350
3
FIN 425 Risk Management FIN 301 & STA 210
3
FIN317L Programming for Financial Applications Lab NONE
1
FIN414L Computational Language for Econometrics NONE
1
MAT 202 Calculus II MAT 101 OR MAT 201 OR Placement
3
MAT 203 Calculus III MAT 201 OR MAT 202 OR Placement
3
MAT 225 Differential Equations MAT 203
3
TECHNICAL ELECTIVES (3 credits)
To be selected from courses of numbers 300 and above offered by the Faculty of Business and Economics
Course Descriptions
CSI 200
Computer Literacy
This course is an introductory Non-Technical survey of Computer Systems and a study of the social impact of computers. Topics include introduction to the Hardware components of a computer system, input and output devices, storage devices, communications and connectivity, Internet, security, information systems and deep exposition to software applications such as text editors, spreadsheet, and presentation software.
Prerequisite: ENG 000
ENG 201
Composition & Rhetoric I
This is the students' first major encounter with critical thinking, reading, and writing. Students are exposed to themes from different disciplines and are expected to discuss them, read and write about them. The essay of all its types is the writing format dealt with in the first half. A research paper, 5-10 pages in length, follows in the second half.
Prerequisite: ENG 100 OR ENG 200
ENG 202
Composition & Rhetoric II
In this course, students are expected to engage in deep critical thinking and to construct written arguments in which they decide on a controversial issue. They are helped to think of argument in terms of having an opinion, voicing it persuasively, and supporting it adequately. Hence, they will be analyzing debatable issues appearing in writing and will be introduced to the elements and structure of argument, including the Toulmin model, the rhetorical situation, the traditional categories of claims, the types of proof, logical fallacies and the Rogerian argument. Reading, critical thinking, and writing are taught as integrated processes. There will be essays for analysis, as well as essay topics for development.
Prerequisite: ENG 201
ENG 205
English Communication Skills
Students' communication competence is enhanced by learning the techniques and strategies of public speaking. No other skills are so closely tied to a student's professional success as communication skills. Using what they have learned in other English language courses, students practice and communicate, guided by the fundamental principles of public speaking, and provided with a forum for applying these principles, through a variety of instructional strategies - discussion, class workshops.
Prerequisite: ENG 202
HMS 201
Active Learning & Research Methodology

This is an introductory course that aims at bridging the gap between school and college and develops the student's skills in three areas related to active learning and research methodology. In the first area, the student is introduced to the university's rules and regulations and general guidelines. In the second area, the student hones his/her study skills, namely, developing schedules, improving concentration, developing time-saving test-taking strategies, taking good notes, improving listening and reading skills, and applying strategies to avoid test anxiety. In the third area, the student is introduced to research, armed with the theory, methodology, and techniques of the research process, starting with conceptualization and ending with report writing.

Prerequisite: ENG 001
HMS 301
Western Civilization
This course consists of readings and discussion of the classic great books of Western Civilization, focusing on literary, philosophical, and historical works from ancient Greece and Rome. Readings will be selected from authors such as Homer, Virgil, Ovid, Herodotus, Thucydides, Livy, Tacitus, Plutarch, Plato, Aristotle, Epictetus, Epicurus, Cicero, Seneca, Marcus Aurelius, Plotinus, and Augustine.
Prerequisite: ENG 201
MAT 201
Calculus I
This is an introductory calculus course. Contents include functions and graphs, rates of change, limits and continuity, differentiation rules and their applications, Rolle's theorem, the Mean Value Theorem, L'Hopital's Rule, optimization of functions, integrals and their area calculation applications, and the Fundamental Theorem of Calculus.
Prerequisite: MAT 100 OR MAT 200 OR MAT200X OR MAT 100X OR MAT 106 OR PLACEMENT
ENG 200
Writing Skills
This course covers the major components of effective communication in English. Students practice paragraph and essay writing and go over the main grammar rules. In addition, they are expected to participate in oral debates and presentations.
Prerequisite: ENG 001
ACC 201
Principles Of Accounting I
This course introduces students to the basic concepts and techniques of accounting. It deals with different aspects of measuring, classifying, summarizing, reporting, and interpreting financial information within the context of generally accepted accounting principles. Topics include: journals, ledgers, trial balances, worksheets, cash control, bank reconciliation, payables and preparation of financial statements for a sole proprietorship.
Prerequisite: ENG 001
ACC201P
Problem-Solving for Principles of Accounting I
This lab course is developed to enhance the problem-solving skills of the students in the "Principles of Accounting I" course. Students are coached and mentored to utilize critical thinking and problem-solving techniques through complimentary exercises and case studies.
Prerequisite: NONE
ACC 202
Principles Of Accounting II
This course complements the basic concepts and techniques covered in ACC 201. Main emphasis is on the analysis of financial statements, cash flows and fund statements. Moreover, students will be introduced to financial analysis needed for partnerships, organization and operations of corporations, stockholders' equity, bonds, stocks and investment in corporate securities.
Prerequisite: ACC 201 & (ENG 100 OR ENG 200 OR ENG 105)
ACC202P
Problem-Solving for Principles of Accounting II
This lab course is developed to enhance the problem-solving skills of the students in the "Principles of Accounting II" course. Students are coached and mentored to utilize critical thinking and problem-solving techniques through complimentary exercises and case studies.
Prerequisite: NONE
ECO 201
Introduction To Microeconomics
This is an introductory course in economics. It provides students with general information about the functioning of market forces in determining the prices and the level of production in a free market economy. The course introduces the behavior of each firm as a part of the trade in different types of markets. The topics covered in this course include: mechanics of individual prices, demand, supply, elasticity, theory of consumer behavior, costs of production, price and output determination under different market conditions, the employment and pricing of economic resources.
Prerequisite: ENG 100 OR ENG 200 OR ENG 105
ECO 202
Introduction To Macroeconomics
This course introduces the students to the performance of the economy of a country on aggregate basis. It aims to teach how the economics of a nation functions. The students are introduced to national income accounting, inflation, unemployment, the role of taxes, government budgets, banking systems, the monetary policy, international trade, exchange rates and balance of payments deficit and surplus.
Prerequisite: ENG 100 OR ENG 200 OR ENG 105
FIN 301
Finance I
This course focuses on the role of the financial manager in the use of financial concepts and techniques in planning for the acquisition and use of funds to maximize the value of the firm. In addition, it covers taxes, discounted cash flow analysis, sources and uses of funds, valuation models, risk and rates of return, financial analysis, financial forecasting, financial planning and control, working-capital policy, cash and marketable securities management, credit management, inventory management and short-term financing.
Prerequisite: ACC 202 & MAT 220
FIN301P
Problem-Solving for Finance I
This lab course is developed to enhance the problem-solving skills of the students in the "Finance I" course. Students are coached and mentored to utilize critical thinking and problem-solving techniques through complimentary exercises and case studies.
Prerequisite: NONE
MGT 210
Management Principles
This course provides students with fundamental knowledge in the field of management; the historical approaches, which influence today's management; the management functions that include planning, organizing, leading and controlling; and, contemporary management theories, practices and the role of managers in modern organizations. Real life cases are analyzed to acquaint students with the critical thinking approach.
Prerequisite: ENG 100 OR ENG 200 OR ENG 105
MGT210P
Case Study for BMGT Principles
This course is developed to enhance the problem-solving skills of the students in the "Management Principles" course. Students are coached and mentored to utilize critical thinking and problem-solving techniques through complimentary exercises and case studies.
Prerequisite: NONE
MGT 330
Business Law I
The main objective of this course is to provide a solid background in Lebanese commercial law. Topics include the nature of the law, the courts systems, contracts, property sales and secured transactions, insurance, commercial paper, agency, partnership, corporations, bailment, bankruptcy and banking operations. It also covers the main rules governing the very dynamic Lebanese social security and income tax legislation. The theoretical study is complemented with practical cases and jurisprudence as compared to international business law, particularly to the American business law.
Prerequisite: ENG 201 & (MGT 210 OR HOM 210)
MIS 305
Management Information Systems I
This course is an introduction to the MIS discipline. It covers the fundamentals of Information Technology, management structures and basic business operations. The goal of this course is to help business students learn how to use and manage information technologies to revitalize business processes, improve business decision making and gain competitive advantage.
Prerequisite: CSI 201 OR (CSI 200 & MGT 210) OR (TTM 202 & CSI 200) OR (CSI 200 & HOM 210)
MKT 201
Principles Of Marketing
An introductory course which describes the field of Marketing and the operation of marketing systems. It focuses on topics such as marketing environment, market regulation, strategies, targeting, product-mix, labeling, branding, packaging, pricing, distribution and promotional programs.
Prerequisite: ENG 100 OR ENG 200 OR ENG 105
MKT201P
Case Studies for Principles of Marketing
Prerequisite: NONE
STA 210
Statistics & Probability For Business I
This course is an introduction to statistics and probability. Contents include methods used in collection, organization, presentation and analysis of data for the purpose of better business decisions. It introduces deductive and inferential statistics and probability. The course includes applications using computerized software such as MegaStat and SPSS
Prerequisite: (ENG 100 OR ENG 200 OR ENG 105) & MAT200X OR MAT100X
STA 310
Statistics & Probability For Business II
This course is an advanced statistics course that builds on the probability theory developed in STA 210. Contents include point and interval estimations, testing hypothesis, non-parametric methods, goodness of fit, experimental design, analysis of variance and covariance, regression and correlation. The course includes applications using computerized software such as MegaStat and SPSS
Prerequisite: (ENG 100 OR ENG 200 OR ENG 105) & STA 210
BUS 300
Business Computing
This course is designed for students to acquire intermediate and advanced skills in Microsoft Excel as well as Statistical Product & Service Solutions (SPSS) software. This course is divided into two stages providing hands-on practical applications. Problems from the business field are solved using the advanced features of the two application software dedicating 50% for each application. Topics include a variety of business applications such as: Excel: financial modeling and reporting, charts, analytical tools and scenario analysis, and Pivot tables for decision-making; SPSS: Quantitative techniques such as Descriptive and Causal statistics covering Probability Distribution Tables and related chart graphics, Crosstabs, Correlation Analysis, & Regression Analysis, and Qualitative techniques such as Chi-square Analysis for hypotheses testing.
Prerequisite: Junior Standing
FEN 397
Internship in Financial Engineering
This course is an internship in a financial institution or any finance-related job in which the student needs to demonstrate more than adequate comprehension of the real business and financial applications in the market. Internship programs are subject to a-two-tier evaluation process: from the student and from the job supervisor.
Prerequisite: Junior Standing
FEN 398
Senior Project Proposal in Financial Engineering
Students in this course are given 15 class hours of lecturing for subjects related to research methodology, methods, and techniques. Each student should by the end of term submit a detailed research proposal for his/her senior project with an oral presentation.
Prerequisite: Junior Standing
FEN 499
Senior Project in Financial Engineering
To fulfill graduation requirements, each senior level student is required to submit and pursue an empirical or theoretical research project that demonstrates mastery of skills in the field of Financial Engineering. The project may be extended to two consecutive semesters.
Prerequisite: Senior Standing
FIN 312
Quantitative Methods for Finance
The aim of this course is to introduce you to the Quantitative techniques used in the key areas of Finance. Models such as the Markowitz Portfolio, Share Price Valuation, Bond Portfolio Management, Capital Market Theory and Derivative Pricing will be explored. Students will be also exposed to the various types of probability distributions that describe the nature of financial data.
Prerequisite: STA 310
FIN 317
Programming for Financial Applications
This course introduces the student to the Python programming language. Topics include: IDLE environment, language components, control flow constructs, file objects and I/O, sequences, collections, mapping types (dictionaries), object oriented programming (classes), type emulation, regular expressions, simple network and web programming (web client/CGI  and server). Upon completion of this course, student will be able to write enhanced and non-trivial Python applications.
Prerequisite: CSI 200
FIN 350
Financial Markets & Institutions

Financial markets facilitate the flow of funds in order to finance the investments by corporations, governments, and individuals. Financial institutions are the key players in financial markets because they serve as intermediaries that determine the flow of funds. Each type of financial market is described with a focus on its utilization by financial institutions, its internationalization, and recent event that have affected it. This course provides a conceptual framework that can be used to understand why markets exist.

Prerequisite: FIN 301
FIN 371
Valuation and Risk Management of Fixed Income Securities
This course examines the valuation of fixed-income securities, the market operations and management of risk. Topics include: valuation of bonds, term structure of interest rate, measuring and managing interest rate risk, corporate bond market, passive and active bond portfolio management, performance measurement, and securitization and interest rate derivatives.
Prerequisite: FIN 350
FIN 403
Contemporary Corporate Finance

The course focuses on the role of the financial manager within the contemporary evolution of corporate finance. This course deals with three decisions of the financial manager which are: capital budgeting, financing, and working capital. Moreover, it includes topics related to project valuation, cash flows, the cost of the capital, dividend policy, operating and financial leverage, optimization of capital structures, financial planning and forecasting, and firm valuation. Students are also required to integrate risk management techniques via the @RISK software.

Prerequisite: FIN 350 OR ACC 303
FIN 405
Investment & Porftolio Analysis
This course is an analysis of the principles of investment. It focuses on the portfolio analysis, securities and risk valuation, capital asset pricing models, arbitrage, bond yields and returns, stock valuation, options, future contracts and investment.
Prerequisite: FIN 402
FIN 406
Financial Modeling & Analysis
This course follows a step-by-step approach for building a comprehensive, multi-purpose projection model in Excel and subsequently interpret selective operating, credit and equity valuation data.  Thus, students shall learn how to evaluate a company's operating and financial performance; how to develop an appropriate capital structure by structuring debt and equity transactions which balances risk and return. Finally, participants in this course learn the techniques for investment optimization in addition to running Monte Carlo simulations.
Prerequisite: BUS 300
FIN 414
Econometrics and Computing techniques

This course is designed to introduce students to economic analysis and decision making. The main objective of the course is to train the student in (I) handling economic data; (II) quantitative analyses of economic models with probabilistic tools; (III) econometric techniques, econometric applications as well as their statistical and practical interpretation.
The course focuses on practical and conceptual issues involved in the substantive applications of econometric techniques. Estimation and inference procedures are formally analyzed for simple econometric models and illustrated by empirical case studies using real-life data.

Prerequisite: STA 310 & ECO 201 & MAT 220
FIN 420
Financial Derivatives
Derivatives are financial instruments where value is derived from the value of another asset. This course examines how derivatives may be used to meet a firm's objectives, and how derivative strategies may sometimes generate additional risk for the firm.
Prerequisite: FIN 350
FIN 425
Risk Management
This course focuses on managing risk in the context of Basle II Accord. Emphasis is placed upon the identification, evaluation and risk control that face financial institutions. An overview of Basle II Accord is presented, along with capital requirements calculation for market, credit and operational risk. Basic quantitative analysis along with some legal and accounting issued are also considered.
Prerequisite: FIN 301 & STA 210
FIN317L
Programming for Financial Applications Lab
This course provides hands-on lab experiments on topics covered in ICT 250 using either Linux or Windows platform.
Prerequisite: NONE
FIN414L
Computational Language for Econometrics
In this course students learn how to program in R and how to use R for effective data analysis. Participants learn how to install and configure software necessary for a statistical programming environment, discuss generic programming language concepts as they are implemented in a high-level statistical language. The course covers practical issues in statistical computing which includes programming in R, reading data into R, accessing R packages, writing R functions, debugging, and organizing and commenting on results and findings.
Prerequisite: NONE
MAT 202
Calculus II
This is an intermediate calculus course. Contents include integral calculation of areas, volumes and lengths of graphs, transcendental and hyperbolic functions, inverse functions and their derivatives, integration techniques, and an introduction to multi-variable integrals.
Prerequisite: MAT 101 OR MAT 201 OR Placement
MAT 203
Calculus III
This is an advanced calculus course. Contents include sequences and series, Fourier series, Lagrange multipliers, polar coordinates and their applications, functions of several variables, partial differentiation, quadratic surfaces, cylindrical, spherical, and rectangular coordinates and multiple integrals and their applications.
Prerequisite: MAT 201 OR MAT 202 OR Placement
MAT 225
Differential Equations
This course discusses the principles techniques and applications of differential equations needed in engineering. Contents include first-order equations, separable, exact, and linear equations, second-order differential equations, Frobenius Method, Fourier series and Laplace transforms.
Prerequisite: MAT 203

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