--%>
Assignment Help - homework help

Why mathematics in Quantitative Finance is important

Why a different type of mathematics in Quantitative Finance is important?

E

Expert

Verified

The real-world subject of quantitative finance uses tools from various branches of mathematics. And financial modelling can be approached in a variety of various ways. For several strange reason the advocates of various branches of mathematics find quite emotional while discussing the demerits and merits of their methodologies and those of their ‘opponents.’

   Related Questions in Financial Management

  • Q : Closed-end country funds trade at

    Why do you think closed-end country funds frequently trade at a premium or discount?CECFs trade at premium or discount since capital markets of the home & host countries are segmented, preventing cross-border arbitrage. If cross-border arbit

    		•
  • Q : What are Uses of Wiener

    What are Uses of Wiener Process/Brownian Motion in Finance? Answer: This is the most common stochastic building block for random walks within finance.<

    		•
  • Q : List the arguments of FX call or put

    List the arguments (variables) of which a FX call or put alternative model price is a function. How does the call & put premium change w.r.t. alteration in the arguments?Both call & put options are functions of just six variables: S

    		•
  • Q : Focus on cash flows rather than profits

    We focus more on cash flows rather than profits when estimating proposed capital budgeting projects. Explain.

    		•
  • Q : Explain marking to market with an

    Explain marking to market with an example.

    		•
  • Q : Trading at small figure bid-ask of 35-40

    A CD/$ bank trader is at present quoting a small figure bid-ask of 35-40, while the rest of the market is trading at CD1.3436-CD1.3441. What is implied regarding the trader's beliefs by his prices?The trader have to think the Canadian dollar wi

    		•
  • Q : Criticize flexible exchange rate regime

    Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor

    		•
  • Q : European Sovereign-Debt Crisis Describe

    Describe the present economic crisis situation in Europe.

    		•
  • Q : Described advantages and disadvantages

    Described the advantages & disadvantages of the gold standard. The advantages of the gold standard comprise: (I) as the supply of gold is limited, countries cannot comprise high inflation; (2) any BOP disequili

    		•
  • Q : Financial ratio analysis Why financial

    Why financial ratio analysis requires trend analysis and industry comparison?

    		•