Financial mathematics

Financial mathematics is the branch of applied mathematics concerned with
the financial markets. The subject naturally has a close relationship with
the discipline of financial economics, however the subject is narrower in
scope and more abstract. A central difference is that whilst a financial
economist might study the structural reasons why a company may have a
certain share price, a mathematician may take the share price as a given,
and attempt to use stochastic calculus to obtain the fair value of
derivatives of the stock.

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