Black-Scholes equation

champagne
The maths of randomness: universality

The second guiding principle in probability theory is more subtle – universality.

view
Physical finance
The fact that a sizeable proportion of the financial workforce is made up of physicists is one of the industry's best-kept secrets. We talk to Laura Tadrowski, who has made the leap from physics to finance.
view
A risky business: how to price derivatives
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.
view
icon
Career interview: Project finance consultant
Nick Crawley had recently set up his own financial consultancy firm in Sydney, Australia, offering advice on large-scale financing deals. He tells Plus about the challenges and rewards of working in an incentive-driven environment.
view
icon
Career interview: Financial modelling
David Spaughton and Anton Merlushkin work for Credit Suisse First Boston, where they provide traders in the hectic dealing room with software based on complicated mathematical models of the financial markets. PASS Maths interviewed them at their offices in Canary Wharf in London.
view
Subscribe to Black-Scholes equation
  • Maths in a minute

    Want facts and want them fast? Our Maths in a minute series explores key mathematical concepts in just a few words.

  • Chocolate and mayonnaise
    chocolate

    What do chocolate and mayonnaise have in common? It's maths! Find out how in this podcast featuring engineer Valerie Pinfield.

  • From clicks to chords
    icon

    Is it possible to write unique music with the limited quantity of notes and chords available? We ask musician Oli Freke!

  • The lungs of the Earth

    How can maths help to understand the Southern Ocean, a vital component of the Earth's climate system?

  • SBIDER Presents: Shining a light on COVID modelling
    icon

    Was the mathematical modelling projecting the course of the pandemic too pessimistic, or were the projections justified? Matt Keeling tells our colleagues from SBIDER about the COVID models that fed into public policy.

  • Mathematical snapshots: Daniel Kreuter

    PhD student Daniel Kreuter tells us about his work on the BloodCounts! project, which uses maths to make optimal use of the billions of blood tests performed every year around the globe.