Abstract
This paper analyzes the basic connotation of financial mathematics, financial mathematics through research development, control theory, differential game theory and capital asset pricing model from stochastic optimal, and discusses three important applications of mathematics in the financial field.
Highlights
Financial mathematics is the product of applying mathematics to portfolio selection theory and option pricing theory
Called analytical finance, mathematical finance and mathematical finance, is an interdisciplinary subject of mathematics and finance that arose in the late 1980s and early 90s
Mathematical problems in the financial field is mainly on the stock selection and portfolio analysis of asset pricing theory combined under conditions of uncertainty, which is the optimal arbitrage, and equilibrium theory the three most important basic concepts
Summary
Financial mathematics is the product of applying mathematics to portfolio selection theory and option pricing theory. With the rapid development of the economic situation, the products and derivatives of the financial industry are constantly optimized and innovative, and new financial products and services are gradually increasing. The operation of financial markets, the design and pricing of financial derivatives, and the analysis and management of risk become very important, and the research and development of financial mathematics is becoming more and more important. It is of practical significance to analyze the specific application of mathematics in the financial field
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