Financial Mathematics
Contents
1 What is Financial Mathematics
2 What is the Financial Mathematics program
at Ben-Gurion University
3 What are the requirements for entering
the program
4 Where else can one study Financial Mathematics
5 What can one do with a degree in Financial
Mathematics
1 What is Financial
Mathematics
Financial Mathematics is the application of advanced mathematical methods
to financial markets and financial management, using advanced computer
technology to predict the behavior of the markets and suggest strategies
for investment.
Over the past two decades, the great progress in economic sciences
combined with advances in computer and information technology have transformed
the investment process and the finance industry. Today, banks and other
financial institutions regularly employ mathematical techniques and finance
theory to gain competitive advantage. Mathematical models are used to predict
returns, measure risk, and value complicated transactions. The methods
developed are then made, using advanced computer technology, into programs
that are an essential tool for traders, portfolio managers, regulators,
and risk managers. These developments have led to a large and growing demand
for talented people who master Financial Mathematics.
The main areas in which Financial Mathematics is applied are
-
modeling and forecasting financial markets;
-
derivative instruments and securities;
-
hedging and financial risk management
-
asset allocation and investment management;
-
quantitative trading and arbitrage;
-
asset/liability management;
-
quantitative issues in corporate and public financial
policy;
-
computer and information technology in financial
services industry.
Needless to say, the big gains in the New-York Stock exchange in the
last 10 years contributed greatly to the interest in Financial Mathematics.
Here in Israel The new possibility of investment in foreign markets is
expected to greatly increase our exposure to the modern financial world.
Financial Mathematics is also a beautiful mathematical theory. The
depth of the theory has received international recognition when the Nobel
prize in economics was awarded in 1997 to Robert Merton and Myron Scholes
for the
Black-Scholes
formula, one of the major achievements in the early days of Financial
Mathematics.
2 What is the Financial
Mathematics program at Ben-Gurion University
The Financial Mathematics program at BGU is offered by the department
of mathematics in collaboration with the department of economics. It
is a two years program leading towards an M.Sc. degree in Mathematics.
Courses offered in the program are of 3 types:
-
Courses in Mathematics, with emphasis on Probability
and Stochastic processes.
-
Courses in Economics, with emphasis on finance.
-
Courses in computational methods in economics.
The following documents give more details about the program
(You should be able to view these documents. If you can't, you will
need Adobe Acrobat, which can be downloaded for free here)
3 What are the requirements
for entering the program
Students in the program are supposed to have a good mathematical background.
The program is therefore targeted mostly towards students with degrees
in Mathematics, Physics or Electrical engineering. Students from other
disciplines who wish to enter the program will usually have to take a further
year of preparatory courses in mathematics.
4 Where else can
one study Financial Mathematics
In America and Europe Financial Mathematics is very fashionable. In
the last couple of years you can study Financial Mathematics at most of
the top universities there. Here is a list of links to Financial Mathematics
programs in the world.
Cambridge
University, England
Carnegie Mellon
University
Claremont
University, Financial Engineering Program
Columbia
University
Cornell
University
Dublin
City University, M.Sc. in Financial and Industrial Mathematics
ETH, Zurich
Glasgow
Caledonian University, Financial Mathematics Program
Florida
State University, Financial Mathematics Program
Illinois Institute
of Technology, Financial Markets and Trading Program
Massacusssetts
Institute of Technology
New
York University
Ohio State
University, Fisher College of Business, Finance
Oregon Graduate
Institute of Science and Technology
Polytechnic
University, New York
Princeton
University, Financial Engineering Program
Purdue
University
Stanford University
Saint Xavier
University, Chicago
University
of California, Berkeley
University of
Chicago
University of
Paris
University of
Paris and ENSAE
University
of Reading, ISMA Centre
University
of Singapore
University of Southern
California
University
of Technology, Sydney Australia
University of
Texas, Austin
University
of Toronto, Canada
In Israel Ben-Gurion University is the first to open a Financial
Mathematics program.
5 What can one do
with a degree in Financial Mathematics
A wide range of career opportunities is available to graduates in Financial
Mathematics:
-
commercial and investment banks
-
brokerage and investment firms
-
insurance companies
-
consulting and accounting firms
-
treasury departments of non-financial corporations
-
public institutions, such as state and local governments
and international organizations
-
software and technology vendors providing products
and services to financial industry
File translated from TEX by TTH,
version 2.60.
On 26 Jun 2000, 20:53.