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Editorial
- Support Plus — make a difference to mathematics
- Common sense
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.
Well, no-one knows exactly, but using stats you can make a good guess. This article tells you how and has an interactive life expectancy calculator. Do you dare to find out?