Engineers without hard hats

Financial engineers don’t wear hard hats, even though some of the stuff they figure out is so complicated it might at first feel like a punch in the head. Don’t worry. A Dictionary of Finance explains how financial engineers work, in terms that anyone can understand

Financial engineering is the application of mathematics to financial questions, typically using computer models

If we asked you to calculate the price of a financial option, you’d probably say you’ll get back to us in seven years after you’ve earned your PhD in system theory and time-series analysis. But we didn’t want to wait that long, so we got an expert onto the podcast who already has that rather impressive qualification.

Thomas Ribarits, who heads the European Investment Bank’s financial engineering division, explains what financial engineers do. It’s a complicated subject, though Thomas boils down option pricing to a level where he says someone with high school maths could understand it. In fact, he says, it’s all about common sense.

Related posts:

Fromgoogle images.. “Images that Represent my Summer 2020” is published by Elizabeth Truong in OSA Digital Media.

Indexing is what makes database queries fast and scalable. Without an index, a database is forced to trawl through every record to calculate the answer to a query. A carefully designed index allows a…

XZEN Project is happy to provide you with the first Monthly Progress Report December 2017. The following milestones have been completed by XZEN Project team within the reporting month: 5. Conclusion…