Mathematica "Uniquely Able" as a Financial Tool
The new generation of finance professionals is learning
its skills in a new way. At many institutions, Mathematica is now
an integral tool in the finance training of both students and
Major corporations, government organizations, and top-ranked finance
such as Norwich Union (based in the UK), the U.S. Federal Reserve, and
Oxford University are all using Mathematica both for training and
in practice. Why? Because they have all recognized what William Shaw,
Director of Oxford System Solutions, states in the preface to his latest book:
Mathematica is "uniquely able" as a financial modeling tool.
Shaw, who teaches applied mathematics at Oxford's Balliol College when not
directing his mathematical modeling consultancy, says that Mathematica is
one of few mature software systems that combine symbolic capabilities;
advanced numerical algorithms; 2D, 3D, and animated visualization; easy
programming; and professional typesetting--"all within one environment." Todd
Stevenson, manager of finance and economics products at Wolfram Research, says,
"There are other programs out there that do some of these things well, but
Mathematica is the only one that can do them all together--and it's
powerful, flexible, and fast enough for the trading desk."
Another effect, or possibly the cause, of the increasing usage of
Mathematica in finance is the inclusion of
Mathematica-based courses in the
core curricula of some of the world's top-ranked finance schools.
Postgraduate programs in mathematics and finance at institutions such as
Oxford University, the University of London's Imperial College, and
Columbia University are all using Mathematica in the classroom.
"There were very high expectations in this course, but by the end of the
year we students were very well prepared," said Erwann Rogard, a Ph.D.
candidate specializing in mathematical finance at Columbia University, who
recently completed a course in which Shaw's book Modelling Financial
Derivatives with Mathematica was used.
For those already in practice, Mathematica has become commonplace
professional development and certification courses. The North American
Actuaries is currently running several courses using Mathematica
as part of its 2000 Seminar Series. And again in September, Britain's
Physics, an international learned society and professional
that also provides technical and management training for employees in
technology-based companies, is presenting for the third time a series of
courses in quantitative finance based on Mathematica.
For many financial engineers, analysts, and risk managers,
become the global standard. Other firms now using Mathematica in
finance training and consulting include the UK's UNICOM and Arbitrage
Research and Trading (ART); Germany's CANdiensten,
ADDITIVE GmbH, and Weber & Partner
Financial Technology; and a number of newer international firms.
For more information about specific training opportunities in finance,
visit the Mathematica
training calendar. To learn more about why Mathematica
is such an ideal tool for finance professionals, and to read about other
case studies, visit the new Mathematica Solutions in
Economics and Finance on our web site.