Content about “

differential equation

”

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.

Not so long ago, if you had a medical complaint, doctors had to open you up to see what it was. These days sophisticated imaging techniques save you the risk and pain of an operation. Chris Budd and Cathryn Mitchell look at the maths that is responsible for these medical techniques, and also for much of the digital revolution.

The Arctic ice cap is melting fast and the consequences are grim. Mathematical modelling is key to predicting how much longer the ice will be around and assessing the impact of an ice free Arctic on the rest of the planet. Plus spoke to Peter Wadhams from the Polar Ocean Physics Group at the University of Cambridge to get a glimpse of the group's work.

In issue 29 of Plus, we heard how a simple mathematical equation became the subject of a debate in the UK parliament. Chris Budd and Chris Sangwin continue the story of the mighty quadratic equation.