Explain the importance of financial mathematics?
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First of all, it would take you about the same amount of energy to think about this and come up with the answer yourself, rather than ask someone else to do it for you. Nevertheless, I'll get you started. How about this? How do you understand what it cost you to run your business? How do you decide how to price your product? How much profit will you make next year? How do you decide what to invest in? What should you do with extra cash? Should you lease or buy? Get the point?
1175291
math, marketing, finance(of course), economics, management, accounting, & statistics
320038
The most important thing for you to know is your own mathematical skills.  You must know how to add, subtract, multiply, & divide.  NEVER be fully dependent on the machine!  You need to have a really good idea of what the total should be without the machine.  This is so that you can do it on your own in case the machine is broken or the power is out.
355678
It all depends what field of BA you are looking at, so here are a few\nFinance-Most equations used in a finance class are actually statistical models that are simplyed to one case, as you get into the higher finance classes you will see more statistical models (any equation in statistics is referred to as a model) (anytime you are talking about a mean(average), deviations, see any equation that includes a sum (large sigma), you are using statistics, if your teacher says it's easier to just teach you the calculotor vs showing you the equations it's statistics), now unless you are doing analysis you will never have to see an equation\nManagment: Dealing with people is largely a psychological process, and when you talk about large groups of people and how you are dealing with them, the principle came from a study, and for a study to be accepted in psychology it must include statistical analysis, now will you even learn the processes for this class, no.\nAccounting: I never went into higher level accounting so I can't answer this, however I strongly doubt the use of statistics.\nMarketing,P/R: When you are talking demographics, that is statistics, it is impossible to do a marketing campaign without knowing your audience, and the process of analyzing your audience is a statistical process.\nI may have missed a field, however those are the base ones as I see it.  Do you have to know statistics, yes, do you need a statistics class that's also used for math students, no.
516893
Fundamentals of Mathematical Economics -- Chang
550682
Oy that is a great question.  I take it you taking a risk managment or a derivative course! ;)  Basically you would have to put in functions (functions of interest and volatility variations) for both and then evaluate it accordingly.  It is nearly impossible to do by hand but computer can provide you with some good insight :).  That's when 3D probability that engineers love so much kicks in.  \n\nRival
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Some. If you're writing logic that solves math, it's essential.
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"The financial sector mobilizes savings and allocates\ncredit across space and time. It provides not only payment services, but more importantly products which enable firms and households to cope with economic uncertainties by hedging, pooling, sharing, and pricing risks. An efficient financial sector reduces the cost and risk of producing and trading goods and services and thus makes an important contribution to raising standards of living."\n\nSo there - in short - if we didn't have one - we would have to work in real money (ie no loans) which could prevent us (or businesses) from investing in projects until the money was saved...\n\nAlso the whole insurance market wouldn't exist which could have devastating consequences for households and businesses.
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I started writing this out myself, and I found a great answer, much better than any I could give you. Here are a few quotes, and the whole article is at the URL noted in the sources.\n\n"The importance of calculus is that most of the laws of science do not provide direct information about the values of variables which can be directly measured. In other words, if you are lost, then physics will not help you find your way home, because there are no laws of physics that provide direct information about position ... many of the most important principles in science are rules for the way variables change. For instance, physics tells you how velocity will change in various situations -- i.e. it tells you about acceleration.\n\nThis is why it's important to have a mathematical way of talking about change. That's why you see the concept of the derivative used throughout science -- in physics, chemistry, biology, economics, even psychology. \n\n...\n\nThe primary importance of calculus in the hard sciences is that it provides a language, a conceptual framework for describing relationships that would be difficult to discuss in any other language.\n\nWhat is worthwhile for students to gain from a calculus course is the ability to read books that use the language of calculus and, at least to some extent, follow the derivations in those books. Unfortunately, being being proficient at the sort of [garbage] skills required to get a good grade in a calculus course is not a lot of help in this respect.\n\nI tell my calculus students that their grades are probably not a very good indicator of being able to do well in future courses. What's more important is whether they make the effort to follow the reasoning given in class and in the text. The most important part of the course (at least when I teach it) is the part that's never tested on."\n\nI *like* this guy.
95619
yes.As we know, mathematics plays an important role in our life. Plus, when we think about it, everything around us use mathematical theory. This proves that english can saves our soul. Without it, we may live in stoneage.
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See p. 541 of Econometric Foundations by Mittelhammer, Judge and Miller.  Will be a bit tough to explain on Yahoo.  Actually, I don't like this book, but none of my other ones have this.
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Valuation of financial derivatives (options, futures, forwards, etc)\nReal hard math, but real good money.
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Black-Scholes theory is the theory underlying financial derivatives which involves stochastic calculus and assumes an uncorrelated log normal distribution of continuously varying prices. A simplified "binomial" version of the theory was subsequently developed by Sharpe et al. (1995) and Cox et al. (1979). It reproduces many results of the full-blown theory, and allows approximation of options for which analytic solutions are not known.\n\nMonteCarlo method: Any method which solves a problem by generating suitable random numbers and observing that fraction of the numbers obeying some property or properties. The method is useful for obtaining numerical solutions to problems which are too complicated to solve analytically. It was named by S. Ulam, who in 1946 became the first mathematician to dignify this approach with a name, in honor of a relative having a propensity to gamble. Nicolas Metropolis  also made important contributions to the development of such methods.\nThe most common application of the Monte Carlo method is Monte Carlo integration. \n\nMonte carlo integration: In order to integrate a function over a complicated domain D, Monte Carlo integration picks random points over some simple domain D^' which is a superset of D, checks whether each point is within D, and estimates the area of D (volume, n-dimensional content, etc.) as the area of D^' multiplied by the fraction of points falling within D. Monte Carlo integration is implemented in Mathematica  as NIntegrate[f, ..., Method->MonteCarlo].\n\ns
197611
Applied mathematics - applied to what?  If you take a generalist applied math degree, you are not particularly qualified to apply the math to anything specific.\n\nIf you are interested in the financial world, financial math is a very hot field right now.  Can you see yourself working in investment banking?  There is potentially enormous money in that.\n\nThere will always be more jobs in computer science than in applied math, but I think the salary potential is more limited in computers.\n\nI personally am an actuary, and might describe my work as math applied to insurance.  I studied a considerable amount of insurance for this application of math to have any credibility among insurance people who are not mathematicians.\n\nI suggest you speak with your math professors and the college career office to get a better idea of what your interests are.
380170
math is an excellent background for many different careers.  first of all, majoring in math gives your thinking structure.  it shows your future employer that you know how to think critically, learn complex concepts, and apply rigor to your creative process.  also math is the basis of ability in seemingly unrelated areas such as art and music.  in terms of actual jobs, relevant careers include financial analysis, actuary, computer science/programming, national security, marketing, and dozens of others.  if you do well in math, you will be able to get a job.
81711
There's no magic formula. It's just willpower. Put the money a little bit out of reach (a savings account, investment, anywhere away from your wallet and your checking account), and don't spend it.
589365
logical analysis is very important as u will be solving real life business problems in MBA. yes maths is important but not compulsory