Financial Mathematics is a field of applied mathematics, concerned with financial markets. The subject has a close relationship with the discipline of financial economics, which is concerned with much of the underlying theory that is involved in financial mathematics. Generally, mathematical finance will derive, and extend, the mathematical or numerical models suggested by financial economics. In terms of practice, mathematical finance also overlaps heavily with the field of computational finance . Arguably, these are largely synonymous, although the latter focuses on application, while the former focuses on modeling and derivation . The field is largely focused on the modelling of derivatives, although other important subfields include insurance mathematics and quantitative portfolio problems.
