Content about “
financial mathematics
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Article

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.
Article

Building bridges from mathematics to the City

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 Isaac Newton Institute quickly recognised its importance and has already run two seminal programmes, in 1995 and 2005, supporting research in the field of mathematical finance.

Article

What is financial mathematics?

Tim Johnson 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.
Article

Chaos, chance and money

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? Colva Roney-Dougal explores the maths, from chaos to group theory.
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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.
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