Areas of Concentration: Financial Mathematics

Financial Engineering and Mathematics (Click here to see faculty involved)  Financial Engineering applies an underlying science to the task of building structures that are useful in financial markets.    The structures are: customized financial contracts and products designed for the goals of managing risk, exploiting financial opportunities, and achieving financial objectives for businesses, governments, and individuals.  Key elements in these structures are options and derivative securities; that is, financial contracts whose values are “derived” from more basic elements (such as stocks, commodities, currencies, credit, and even energy and weather). The underlying science of financial markets is best described in the language of advanced mathematics such as probability, statistics, partial differential equations, and numerical analysis, which are indispensable tools in determining the market values of these derivative securities. The Center will play a key role in coordinating the financial engineering courses and activities between CGU and the undergraduate colleges. [read more >>]