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What are the mathematical models in financial economics? Explain in detail!
The core of financial mathematics is the pricing theory of financial derivatives, which involves profound contents of economics and mathematics. Option pricing model: black? Sehols? Merton theory-this is the core of all financial mathematics theories, also known as mathematical finance, etc. , using mathematical tools to study financial phenomena, quantitative analysis through mathematical models, in order to find potential laws in financial activities and guide practice. Financial mathematics is the combination of modern mathematics and computer technology in the financial field. At present, financial mathematics develops rapidly and is one of the most active preface disciplines. The development of financial mathematics has twice triggered the "Wall Street Revolution". In the early 1950s, Markowitz put forward the portfolio theory of securities, which clearly gave the different investment methods of investing in various securities at a certain risk level for the first time, thus triggering the first "Wall Street Revolution". Markowitz also won the 1990 Nobel Prize in Economics. ...