Many people's impression of mathematics is that it is an ancient edifice built on centuries of research. However, modern quantitative finance, an area of mathematics with such a great impact
on all our lives, is just a few decades old. The Isaac Newton Institute quickly recognised its
importance and has already run two seminal
programmes, in 1995 and 2005, supporting
research in the field of mathematical finance.
Tim Johnson was drawn into financial maths, not through an interest in finance, but because he was interested in making good decisions in the face of uncertainty. Tim explores the development of this interface between abstract mathematics and our everyday lives, and explains why a painting may only be worth its wall space.
With the credit crunch dominating the news, columnists have been wailing about "chaos in the markets", and "turbulent" share prices. But what does move the markets? Are they deterministic, or a result of chance? Colva Roney-Dougal explores the maths, from chaos to group theory.