The banking crisis and its aftermath
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 2571 words.
What happened to the banks in 2008 and what has been the fallout for mathematical finance? ‘The banking crisis and its aftermath’ explains that for mathematical finance it has meant a...
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The classical theory of option pricing
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 9896 words.
‘The classical theory of option pricing’ explains the theory of arbitrage pricing, which is closely related to the Dutch Book Arguments, but which brings in a new factor: prices in...
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Credit risk
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 5515 words.
Credit risk is the risk that your counterparty might default on future obligations. There are a small number of credit rating agencies operating globally that assign a credit rating to each...
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Fund management
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 3407 words.
‘Fund management’ discusses the objective to form portfolios of assets so as to maximize the investment return. A mathematical finance-oriented approach to optimal investment, in the...
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Interest rates
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 5528 words.
In ordinary life, there are many different interest rates—mortgage rates, rates on credit cards, and rates paid by savings accounts—which are mirrored in the commercial world by loans for...
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Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Book. Subjects: Economics; Mathematics; Mathematical Finance. 144 pages.
In recent years, the finance industry has mushroomed to become an important part of modern economies with many science and engineering graduates joining the industry as quantitative...
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Money, banking, and financial markets
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 3717 words.
‘Money, banking, and financial markets’ describes the playing field of mathematical finance: the world of money, banking, and financial markets. It considers the history of money as a...
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Quantifying risk
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 5213 words.
A large part of the purpose of the financial markets is to manage, and indeed profit from, risk—the uncertainty surrounding future events, any event, in fact, that affects the views of...
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Risk management
in Mathematical Finance: A Very Short Introduction
January 2019; p ublished online January 2019 .
Chapter. Subjects: Economics; Mathematics; Mathematical Finance. 2826 words.
The risk management function of a financial company monitors a whole range of risks that the company faces: market risk, credit risk, liquidity risk, operational risk, reputational risk,...
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