Financial Mathematics
This is the application of the science of mathematics to the field of finance and has grown rapidly as a separate profession. Among its many beneficial applications are in the area of asset trading, asset management, risk control and risk management in often very complicated and risky financial positions. An example of its varied topics include hedging, risk analysis, interest rate fluctuations, stock options, market derivatives and financial modelling methods. All of this is designed to give the world of finance a certain degree of certainty rather than making wild guesswork on the many possibilities. Its exacting nature has made the discipline of financial mathematics especially useful in large financial institutions such as the World Bank, Asian Development Bank and International Monetary Fund. However, all these financial assumptions and modelling can sometimes go awry in view of the unpredictable nature of human psychology when faced with the twin factors of irrational fear and improbable greed. Among the spectacular examples of high-profile failures was that of the Long-Term Capital Management Fund which collapsed even with two Nobel-prize winners on its management team. Statistics is an integral part of this stratospheric world of high finance.
Financial Mathematical Team
Site Name: Stanford University
Domain Name: http://finmath.stanford.edu/
Summary: The site to visit when you want to learn more about financial mathematics. This prestigious school offers a masters-level education in this exciting field of study with the combination of economics, statistics and mathematics to provide an inter-disciplinary degree for those with strong aptitudes for applied and computational mathematics.
Site Name: King’s College, London
Domain Name: http://www.mth.kcl.ac.uk/finmath/
Summary: This is another prestigious college in Britain offering a course degree in this new field. It is a very exacting study so only those with strong mathematical skills apply.
Site Name: FinMath.com
Domain Name: http://finmath.com
Summary: An excellent resource site for anything and everything related to financial mathematics. A lot of books can be bought at this site such as those dealing with financial engineering and risk management.