We know volume = length X width X height and as the length, width and height can be measured, we have a simple model to represent the space inside a box. 26. Financial mathematics is a relatively new discipline, rooted in modern economic thought, yet steeped in the classical intellectual disciplines of chance and uncertainty.
Tracing its origins to the early 1970s, and maybe more so, to the introduction of the personal computer, financial engineering’s early triumphs include the development of structured mortgage-backed securities (now the biggest bond market) and a rationale for option pricing – the consequences of which are totally pervasive in modern investing, the markets, and finance.