The subject has a close relationship with the discipline of Financial Economics , which is concerned with much of the underlying theory. Generally, mathematical finance will derive, and extend, the Mathematical or Numerical models suggested by financial economics. Thus, for example, while a financial economist might study the structural reasons why a company may have a certain Share Price , a financial mathematician may take the share price as a given, and attempt to use Stochastic Calculus to obtain the fair value of Derivative s of the Stock .
In terms of practice, mathematical finance also overlaps heavily with the fields of Financial Engineering and Computational Finance . Arguably, all three are largely synonymous, although the latter two focus on application, while the former focuses on modelling and derivation; see Quantitative Analyst .
Many universities around the world now offer degree and research programs in mathematical finance.
