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# Mathematics of Finance

Quantitative techniques have transformed the investment process and the finance industry. Powerful mathematical models are used to measure risk and to value complicated transactions. Computational methods create tools used by traders, portfolio managers, regulators, and risk managers to bring greater efficiency and rigor to financial markets. These developments have led to a large and growing demand for talented people trained in the mathematics of finance.

###### What should one study in college?

Students interested in a career in financial mathematics should study calculus, differential equations, finite difference equations, probability and statistics, numerical analysis, and modern algebra. Stochastic modeling and courses that study the diffusion, or heat, equation may also prove useful. Valuable courses outside of mathematics include finance, mathematical economics, and social science courses that use game theory to model human behavior.