2. Mathematical finance, that is, financial mathematics, also known as mathematical finance and analytical finance, is to use mathematical tools to study finance, conduct mathematical modeling, theoretical analysis, numerical calculation and other quantitative analysis, in order to discover the inherent laws of financial dynamics and guide practice. Financial mathematics can also be understood as the application of modern mathematics and computing technology in the financial field. Therefore, financial mathematics is a new interdisciplinary subject, which develops rapidly and is one of the most active frontier disciplines at present.
3. Mathematical Finance uses modern mathematical tools such as stochastic analysis, stochastic optimal control, backward stochastic differential equation, nonlinear analysis and fractal geometry to study the following problems:
(1) Capital asset pricing model, arbitrage pricing theory, hedging theory and the optimal investment and consumption theory of securities (such as futures, options and other derivatives) in incomplete financial markets.
(2) Term structure of interest rate and pricing theory of interest rate derivatives.
(3) Risk management and risk control theory in incomplete financial markets.
4. With more and more Nobel Prize in Economics awarded to econometric researchers, scholars pay more and more attention to the application of mathematics in financial research. Mathematical finance belongs to the category of financial engineering. Graduates of this major are not only very popular abroad, but also very popular at home. Employment in China is mainly concentrated in the following areas:
(1) Fund companies: Fund companies now need a group of talents who can do fund performance evaluation, risk control and asset allocation.
(2) Securities companies: Securities companies are now in the most difficult period, and they are also seeking opportunities for survival through the design of collective wealth management products.
(3) Banks: The most traditional banks are also undergoing subtle changes. At present, the head offices of major banks are establishing internal risk management models, and talents in this field are urgently needed. However, due to the rigid employment system of banks, truly qualified people may not be able to do this. Another important department within the bank, the Treasury Department, also needs financial engineering talents. On the one hand, they operate in the inter-bank bond market, and they are the main force of fixed-income securities in the future, and also the main force of designing financial engineering products such as corporate bond market and mortgage-backed bonds with huge development space in the future.