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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.
The dangers of trading derivatives have been well-known ever since they were catapulted into the public eye by the spectacular losses of Nick Leeson and Barings Bank. John Dickson explains what derivatives are, and how they can be both risky, and used to reduce risk.
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.
Some practical tips to help you when you need it most!
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Want facts and want them fast? Our Maths in a minute series explores key mathematical concepts in just a few words.
As COP28, the 2023 United Nations Climate Change Conference, kicks off we look at how maths can help understand the climate crisis.
How do you create dramatic film out of mathematics? We find out with writer and director Timothy Lanzone.
Mathematics plays a central role in understanding how infectious diseases spread. This collection of articles looks at some basic concepts in epidemiology to help you understand this fascinating and important field, and set you up for further study.
Find out why the formula we use to work out conditional probabilities is true!
We talk about a play that explores the fascinating mathematical collaboration between the mathematicians GH Hardy and Srinivasa Ramanujan.