Frequently Asked Questions in Quantitative Finance

Paul Wilmott writes,Quantitative finance is the most fascinating and rewardingreal-world application of mathematics. It is fascinating because ofthe speed at which the subject develops, the new products and thenew models which we have to understand. And it is rewarding becauseanyone can make a fundamental breakthrough.Having worked in this field for many years, I have come toappreciate the importance of getting the right balance betweenmathematics and intuition. Too little maths and you won't be ableto make much progress, too much maths and you'll be held back bytechnicalities. I imagine, but expect I will never know forcertain, that getting the right level of maths is like having theright equipment to climb Mount Everest; too little and you won'tmake the first base camp, too much and you'll collapse in a heapbefore the top.Whenever I write about or teach this subject I also aim to getthe right mix of theory and practice. Finance is not a hard sciencelike physics, so you have to accept the limitations of the models.But nor is it a very soft science, so without those models youwould be at a disadvantage compared with those better equipped. Ibelieve this adds to the fascination of the subject.This FAQs book looks at some of the most important aspects offinancial engineering, and considers them from both theoretical andpractical points of view. I hope that you will see that finance isjust as much fun in practice as in theory, and if you are readingthis book to help you with your job interviews, good luck! Let meknow how you get on!