financial mathematics
https://plus.maths.org/content/taxonomy/term/861
enPhysical finance
https://plus.maths.org/content/physical-finance
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Marianne Freiberger </div>
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<img class="imagefield imagefield-field_abs_img" width="100" height="100" alt="" src="https://plus.maths.org/content/sites/plus.maths.org/files/abstractpics/5/23_oct_2013_-_1301/icon.jpg?1382529682" /> </div>
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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. </div>
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<div class="rightimage" style="width: 250px;"><img src="https://plus.maths.org/content/sites/plus.maths.org/files/packages/2013/QM/qmlogo_0.jpg" width="250" height="62" alt="QM logo"/></div><p><em>This article is part of the <a href="https://plus.maths.org/content/researching-unknown">Researching the unknown project</a>, a collaboration with researchers from <a href="http://ph.qmul.ac.uk/">Queen Mary University of London</a>, bringing you the latest research on the forefront of physics. Click <a href="https://plus.maths.org/content/researching-unknown">here</a> to read more articles from the project.</em></p><p><a href="https://plus.maths.org/content/physical-finance" target="_blank">read more</a></p>https://plus.maths.org/content/physical-finance#commentsBlack-Scholes equationfinancial mathematicsphysicsstring theoryThu, 21 Nov 2013 08:05:52 +0000mf3445956 at https://plus.maths.org/contentExploring the financial ecosystem
https://plus.maths.org/content/exploring-financial-ecosystem
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<p>Deciding who is to blame and who should pay for the financial crisis will be a hot topic at the G8 next week. Financial mathematics received a lot of bad press in the aftermath of the crunch and many believe that it was the popularity of mathematical models – often borrowed from physics — that put the financial system at risk. But now models borrowed from biology are helping us understand how this risk might be reduced.</p>
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<p><em>Deciding who is to blame and who should pay for the financial crisis will be a hot topic at the G8 next week. Financial mathematics received a lot of bad press in the aftermath of the crunch and many believe that it was the popularity of mathematical models – often borrowed from physics — that put the financial system at risk. But now models borrowed from biology are helping us understand how this risk might be reduced.</em></p><p><a href="https://plus.maths.org/content/exploring-financial-ecosystem" target="_blank">read more</a></p>https://plus.maths.org/content/exploring-financial-ecosystem#commentsbiologyepidemiologyfinancial mathematicsfinancial modellingnetworkWed, 12 Jun 2013 09:22:25 +0000Rachel5912 at https://plus.maths.org/contentBuilding bridges from mathematics to the City
https://plus.maths.org/content/building-bridges-mathematics-city
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The Plus Team </div>
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<p>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 <a href="http://www.newton.ac.uk/">Isaac Newton Institute</a> quickly recognised its
importance and has already run two seminal
programmes, in 1995 and 2005, supporting
research in the field of mathematical finance.</p> </div>
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<p><em>This article is part of a <a href="https://plus.maths.org/content/isaac-newton-institute">series</a> celebrating the 20th birthday of the <a href="http://www.newton.ac.uk/">Isaac Newton Institute</a> in Cambridge. The Institute is a place where leading mathematicians from around the world can come together for weeks or months at a time to indulge in what they like doing best: thinking about maths and exchanging ideas without the distractions and duties that come with their normal working lives.<p><a href="https://plus.maths.org/content/building-bridges-mathematics-city" target="_blank">read more</a></p>https://plus.maths.org/content/building-bridges-mathematics-city#commentsfinancial mathematicsNewton InstituteThu, 19 Jul 2012 08:56:28 +0000mf3445438 at https://plus.maths.org/contentWhat can birds tell us about flying through ash clouds?
https://plus.maths.org/content/os/latestnews/may-aug10/birds/index
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<p>Why does a financial mathematician think about birds when trying to understand the grounding of aeroplanes after the Icelandic volcano eruption?</p> </div>
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<p>Why does a financial mathematician think about birds when trying to understand the grounding of aeroplanes after the Icelandic volcano eruption?</p><p><a href="https://plus.maths.org/content/os/latestnews/may-aug10/birds/index" target="_blank">read more</a></p>https://plus.maths.org/content/os/latestnews/may-aug10/birds/index#commentsfinancial mathematicsmathematical modellingriskuncertaintyMon, 24 May 2010 23:00:00 +0000mf3445235 at https://plus.maths.org/contentWhat is financial mathematics?
https://plus.maths.org/content/what-financial-mathematics
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Tim Johnson </div>
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<img class="imagefield imagefield-field_abs_img" width="100" height="100" alt="" src="https://plus.maths.org/content/sites/plus.maths.org/files/issue52/features/finance/icon.jpg?1251759600" /> </div>
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<b>Tim Johnson</b> 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. </div>
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<div class="pub_date">September 2009</div>
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<p>If I tell someone I am a financial mathematician, they often think I am an accountant with pretensions. Since accountants do not like using negative numbers, one of the oldest mathematical technologies, I find this irritating.</p><p><a href="https://plus.maths.org/content/what-financial-mathematics" target="_blank">read more</a></p>https://plus.maths.org/content/what-financial-mathematics#comments52credit crunchfinancial mathematicsgamblingprobabilityMon, 31 Aug 2009 23:00:00 +0000plusadmin2369 at https://plus.maths.org/contentPaying the price
https://plus.maths.org/content/paying-price
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Can a scientific approach to risk in finance avoid the next financial crisis? </div>
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<div class="pub_date">15/07/2009</div>
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<p>Consumers, financial institutions, and most importantly regulators did not understand the risks being taken in the financial markets. That was one of the main causes of the current financial crisis according to the Government white paper, <a href="http://www.hm-treasury.gov.uk/reforming_financial_markets.htm"><i>Reforming the financial markets</i></a>, released last week.<p><a href="https://plus.maths.org/content/paying-price" target="_blank">read more</a></p>https://plus.maths.org/content/paying-price#commentsCMScredit crunchderivativefinancial mathematicsTue, 14 Jul 2009 23:00:00 +0000plusadmin2531 at https://plus.maths.org/contentHow maths killed Lehman Brothers
https://plus.maths.org/content/how-maths-killed-lehman-brothers
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Horatio Boedihardjo </div>
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<b>Horatio Boedihardjo</b> explains the credit crunch </div>
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<p><i>This article is the winner in the university category of the <a href="https://plus.maths.org/content/iplusi-new-writers-award-2009"><i>Plus</i> new writers award 2009</a>.</i></p><p><a href="https://plus.maths.org/content/how-maths-killed-lehman-brothers" target="_blank">read more</a></p>https://plus.maths.org/content/how-maths-killed-lehman-brothers#commentscredit crunchfinancefinancial mathematicsfinancial modellingPlus new writers award 2009Sun, 31 May 2009 23:00:00 +0000plusadmin2358 at https://plus.maths.org/contentA risky business: how to price derivatives
https://plus.maths.org/content/risky-business-how-price-derivatives
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Angus Brown </div>
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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. <b>Angus Brown</b> 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. </div>
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<p><i>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. In this article we look at one of these, a simple model for option pricing, and see 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.</i></p><p><a href="https://plus.maths.org/content/risky-business-how-price-derivatives" target="_blank">read more</a></p>https://plus.maths.org/content/risky-business-how-price-derivatives#comments49Black-Scholes equationdifferential equationfinancial mathematicsfinancial modellingoptionMon, 01 Dec 2008 00:00:00 +0000plusadmin2344 at https://plus.maths.org/contentChaos, chance and money
https://plus.maths.org/content/chaos-chance-and-money
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Colva Roney-Dougal </div>
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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? <b>Colva Roney-Dougal</b> explores the maths, from chaos to group theory. </div>
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<p><i>This essay is part of Next Generation Thinkers, commissioned by BBC Radio 3 as part of their annual festival of ideas in Liverpool — the Free Thinking Festival. The essay was broadcast on Tuesday November 4th 2008 on BBC Radio 3. For more information and to listen to the broadcast, visit the <a href="http://bbc.co.uk/freethinking">Free Thinking website</a>.</i></p><p><a href="https://plus.maths.org/content/chaos-chance-and-money" target="_blank">read more</a></p>https://plus.maths.org/content/chaos-chance-and-money#comments49annuitybutterfly effectchaoscredit crunchfinancial mathematicsgroup theorylaw of large numberspermutationMon, 01 Dec 2008 00:00:00 +0000plusadmin2345 at https://plus.maths.org/contentIs maths to blame?
https://plus.maths.org/content/maths-blame
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Who is to blame for the current financial crisis? </div>
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<p>It's a bleak time for the financial markets. We've seen financial institutions fall and governments around the world struggling to stabilise the markets. But who is to blame? According to media reports there are two suspects in the dock: the "rocket scientists" (a.k.a. the financial mathematicians) who provided the information behind the market's decisions, or the greedy bankers who only
thought about quick profits and their end-of-year bonuses.</p><p><a href="https://plus.maths.org/content/maths-blame" target="_blank">read more</a></p>https://plus.maths.org/content/maths-blame#commentscall optionCMScredit crunchderivativefinancial mathematicsforwardhedgingmortgageSun, 05 Oct 2008 23:00:00 +0000plusadmin2464 at https://plus.maths.org/contentOuter space: Pretty mean prices
https://plus.maths.org/content/outer-space-pretty-mean-prices
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John D. Barrow </div>
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How to keep inflation down </div>
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<div class="pub_date">September 2008</div>
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<p>Two hundred fifty million Zimbabwean dollars: in July 2008 these bought you less than 1% of an egg.</p><p><a href="https://plus.maths.org/content/outer-space-pretty-mean-prices" target="_blank">read more</a></p>https://plus.maths.org/content/outer-space-pretty-mean-prices#comments48financefinancial mathematicsinflationouterspaceSun, 31 Aug 2008 23:00:00 +0000plusadmin4805 at https://plus.maths.org/contentCareer interview: Financial Engineer
https://plus.maths.org/content/career-interview-financial-engineer
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Marc West </div>
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<p>"I was one of the lucky people," said Rupa Patel, reflecting on her childhood. "I knew I liked maths from a very early age."</p>
<p>For Rupa, maths was never hard work — indeed, it was something that she always enjoyed doing.</p>
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<p>Rupa Patel</p><p><a href="https://plus.maths.org/content/career-interview-financial-engineer" target="_blank">read more</a></p>https://plus.maths.org/content/career-interview-financial-engineer#comments46Business & Moneycareer interviewconfidence intervaldifferential equationfinancial mathematicsfinancial modellingmathematical modellingpartial differential equationrisk analysisuncertaintySat, 01 Mar 2008 00:00:00 +0000plusadmin2435 at https://plus.maths.org/content2007 Nobel Prizes won by mathematicians
https://plus.maths.org/content/2007-nobel-prizes-won-mathematicians
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Ground breaking work in uncovering optimal funding mechanisms in financial markets </div>
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<div class="pub_date">22/10/2007</div>
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<p align="right"><font size="2"><font color="red">Watch the Prize Announcement on youtube</font></font><p><a href="https://plus.maths.org/content/2007-nobel-prizes-won-mathematicians" target="_blank">read more</a></p>https://plus.maths.org/content/2007-nobel-prizes-won-mathematicians#commentseconomicsfinancial mathematicsgame theorymathematical modellingNobel prizephysicsSun, 21 Oct 2007 23:00:00 +0000plusadmin2480 at https://plus.maths.org/contentCareer interview: Financial maths course director
https://plus.maths.org/content/career-interview-financial-maths-course-director
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Marianne Freiberger </div>
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<p><i>Riaz Ahmad directs and teaches courses on quantitative finance at <a href="http://www.7city.com/Home/Index.cfm">7city</a>, a leading training company for the financial services industry.<p><a href="https://plus.maths.org/content/career-interview-financial-maths-course-director" target="_blank">read more</a></p>https://plus.maths.org/content/career-interview-financial-maths-course-director#comments36Business & Moneycareer interviewdifferential equationeconomicsfinancial mathematicsteachingWed, 31 Aug 2005 23:00:00 +0000plusadmin2423 at https://plus.maths.org/content