Scribd Logo
Upload

Welcome to Scribd!

  • 13 views

    Financial Mathematics: Main Article

    Uploaded by

    Maika J. Pudadera
    Financial mathematics is a field concerned with modeling financial markets and derivatives. It builds on theories from financial economics and focuses on modeling derivatives. It overlaps heavily with computational finance which focuses on applying models of pricing and risk management. Experimental finance aims to study human behavior and price dynamics in simulated market environments to analyze how financial theories hold up in practice and identify new principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Financial Mathematics: Main Article

    Uploaded by

    Maika J. Pudadera
    13 views1 page
    Financial mathematics is a field concerned with modeling financial markets and derivatives. It builds on theories from financial economics and focuses on modeling derivatives. It overlaps heavily with computational finance which focuses on applying models of pricing and risk management. Experimental finance aims to study human behavior and price dynamics in simulated market environments to analyze how financial theories hold up in practice and identify new principles.

    Original Description:

    sdfsdfds

    Original Title

    98

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Financial mathematics is a field concerned with modeling financial markets and derivatives. It builds on theories from financial economics and focuses on modeling derivatives. It overlaps heavily with computational finance which focuses on applying models of pricing and risk management. Experimental finance aims to study human behavior and price dynamics in simulated market environments to analyze how financial theories hold up in practice and identify new principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views1 page

    Financial Mathematics: Main Article

    Uploaded by

    Maika J. Pudadera
    Financial mathematics is a field concerned with modeling financial markets and derivatives. It builds on theories from financial economics and focuses on modeling derivatives. It overlaps heavily with computational finance which focuses on applying models of pricing and risk management. Experimental finance aims to study human behavior and price dynamics in simulated market environments to analyze how financial theories hold up in practice and identify new principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Financial mathematics[edit]

    Main article: Financial mathematics


    Financial mathematics is a field of applied mathematics, concerned with financial markets. The
    subject has a close relationship with the discipline of financial economics, which is concerned with
    much of the underlying theory that is involved in financial mathematics. Generally, mathematical
    finance will derive, and extend, the mathematical or numerical models suggested by financial
    economics.
    The field is largely focused on the modelling of derivatives, although other important subfields
    include insurance mathematics and quantitative portfolio problems. See Outline of finance
    #Mathematical tools and Outline of finance #Derivatives pricing.
    In terms of practice, mathematical finance also overlaps heavily with the field of computational
    finance (also known as financial engineering). Arguably, these are largely synonymous, although the
    latter focuses on application, while the former focuses on modeling and derivation (see: Quantitative
    analyst). There is also a significant overlap with financial risk management.

    Experimental finance[edit]
    Main article: Experimental finance
    Experimental finance aims to establish different market settings and environments to observe
    experimentally and provide a lens through which science can analyze agents' behavior and the
    resulting characteristics of trading flows, information diffusion, and aggregation, price setting
    mechanisms, and returns processes. Researchers in experimental finance can study to what extent
    existing financial economics theory makes valid predictions and therefore prove them, and attempt
    to discover new principles on which such theory can be extended and be applied to future financial
    decisions. Research may proceed by conducting trading simulations or by establishing and studying
    the behavior, and the way that these people act or react, of people in artificial competitive market-
    like settings.

    You might also like