TU Berlin - Medieninformation Nr. 190 English - 24. 190 English - 24. Mathematics conquers the stock exchanges Banks use the latest methods of financial mathematics in order to reduce the risks of trading transactions.
Insurance companies can also benefit and save millions of marks.
The financial wizards juggling with currencies, stocks and shares can make huge profits, but their speculations can also involve considerable risks. However, these can be minimised by means of modern mathematics. Sophisticated modern financial products can be used by business companies to guard themselves against fluctuations in rates of exchange or stock values. Insurers can also use these so-called derivatives to make it easier and cheaper to arrange reinsurance. In recent years there has been a boom on financial mathematics.