ABSTRACT
Financial mathematics plays a pivotal role in various aspects of modern economics and finance. This paper provides an introduction to the fundamental concepts, theories, and applications of financial mathematics. It begins by outlining the basic principles of financial mathematics, including the time value of money, interest rates, and compounding. Computational programs enhance these mathematical models, offering robust solutions and efficient computation for complex financial problems. This study explores the integration of computational programs with financial mathematics, their methodologies, and applications in the finance sector. The results underscore the significance of computational methods in improving the accuracy, speed, and scalability of financial models, ultimately contributing to better decision-making and risk management. We explore fundamental concepts, models, and techniques employed in financial mathematics, aiming to provide a comprehensive understanding of their applications and significance in real-world financial scenarios. This paper provides a comprehensive overview of the application of differential equations in financial mathematics, highlighting key models such as the Black-Scholes model, interest rate models, and optimal investment strategies.
Keywords: Financial mathematics, Interest models, Hamilton-Jacobi-Bellman equation, and Fortran program.
Citation: Khatun S., and Iqbal MA. (2024). A study on modeling financial mathematics by computational program and its applications, Int. J. Mat. Math. Sci., 6(4), 100-111. https://doi.org/10.34104/ijmms.024.01000111
