Math Club, November 01, 2013.

Speaker: Indranil Sengupta, NDSU

Title: Randomness and mathematical finance

Abstract: Mathematical finance is a highly exciting area of modern applied mathematics. In this talk I will present some basic topics in mathematical finance such as time value of money, “no arbitrage opportunity” (“there is no free lunch!”), delta hedging,  forward contracts, binomial model, options and classical Black-Scholes equation. Stock market is random and thus randomness plays a key role in finance. This talk will illustrate some modeling of such randomness in financial market.