Articles

In 1979 decorating work in a house in Vienna revealed a set of medieval frescoes depicting a cycle of songs by a 13th century poet, who was particularly fond of satirising the erotic relationships between knights and peasant maidens. The frescoes are of great historical significance, but they are badly damaged. In this article Carola Schönlieb explores how mathematicians use the heat equation to fill in the gaps.

Would you prefer a game with a 90% chance of winning, or one with a 10% chance of losing? 

In the light of recent events, it may appear that attempting to model the behaviour of financial markets is an impossible task. However, there are mathematical models of financial processes that, when applied correctly, have proved remarkably effective. Angus Brown looks at one of these, a simple model for option pricing, and explains how it takes us on the road to the famous Black-Scholes equation of financial mathematics, which won its discoverers the 1997 Nobel Prize in Economics.