Option B
　　• Financial Mathematics ?C A Practical Guide for Actuaries and other Business Professionals (Second Edition), 2005, by C. Ruckman and J. Francis, Chapters 1, 2, Chapter 3 (3.1-3.7), Chapter 4 (4.2), Chapter 5, Chapter 6 (6.1-6.3), Chapter 7 (7.1-7.8), Chapter 8 (8.1-8.3).

　　• Derivatives Markets (Second Edition), 2006 by McDonald, R. Chapter 1 (1.1-1.4); Chapter 2 (2.1-2.6); Chapter 3 (3.1-3.5), Chapter 4 (4.1-4.4), Chapter 5 (5.1-5.4), Chapter 8 (8.1-8.2), Appendices 2A and 5B.

　　Knowledge and understanding of financial mathematics concepts are significantly enhanced through working out problems based on those concepts.  Thus in preparing for the Financial Mathematics examination, whichever of the source of textbooks students choose to use, students are encouraged to work out the textbook exercises related to the listed readings.

　　Study Notes

　　SNs for the Preliminary Education examinations are available on the SOA Web site under Exams and Jobs/Candidate and Exam Information/Spring Exam Session/Spring 2007 Basic Education Catalog ?C Study Notes Information.  Hard copies may be purchased by using the Study Note and Published Reference order form in the back of the printed catalog or by downloading the form from the Spring Exam Session Web page.

　　Code   Title

　　FM-11-06# FM Introductory Study Note
　　FM-09-05 FM Sample Exam Questions and Solutions
　　FM-10-05 May 2005 FM Exam Questions and Solutions
　　FM-12-05 November 2005 FM Exam Questions and Solutions
　　FM-22-05 Review of Calculator Functions for the Texas Instruments BA-35
　　FM-23-05 Review of Calculator Functions for the Texas Instruments BA II Plus