What is financial mathematics?

Financial Mathematics has emerged over the last40 years as a new and vigorous scientific discipline. It started as a collection of techniques from applied mathematics arising out of macroeconomics and microeconomics, but is now a systematic study of mathematical models and their analysis as they apply to problems in financial risk management. Because of the complexity of market forces, those working in this field require an extensive mathematical and statistical background. Theoretical developments are almost immediately implemented in the financial sector since the financial instruments are constantly evolving.

There are a number of graduate programs in North America, most of which have started in the last five years (some can be accessed by clicking here). However, the models and their analysis, to a significant extent, rely on undergraduate-level mathematics such as calculus, measure theory, numerical analysis, stochastic processes, linear algebra, probability and differential equations. Our programs include these fundamental mathematical theories which are then given concrete meaning through the simultaneous development of appropriate financial applications. Laboratory experience with computational mathematics in the context of these applications is essential for a comprehensive study of this field and is included as well. The BA and BSc programs provide not only the skills necessary for immediate application but also the understanding needed to continue to acquire and develop new techniques.

Our "financial mathematicians" are well-prepared to adapt to changes in this rapidly evolving field. The same theory and methods are being used throughout the world, so employment opportunities are truly global. The programs have as their fundamental core rigorous mathematics training so that outstanding students will be well-suited to graduate work in either financial mathematics or in more pure mathematics.