Mathematicalfinanceisafieldofappliedmathematicsthatfocusesonfinancialmarkets.Itinvolvesusingmathematicalmodelsandcomputationaltechniquestoanalyzefinancialinstruments,assessrisks,andoptimizeinvestmentstrategies.Keyareasincludederivativepricing,portfoliotheory,riskmanagement,andstochasticcalculus.ProfessionalsinthisfieldoftenworkwithconceptsliketheBlack-Scholesmodel,MonteCarlosimulations,andarbitrage-freepricing.Mathematicalfinanceiswidelyusedbyinvestmentbanks,hedgefunds,andinsurancecompaniestomakedata-drivenfinancialdecisions.Thedisciplinerequiresstrongknowledgeofprobability,statistics,andnumericalmethods.
