Mathematical modeling in quantitative finance refers to the use of mathematical
techniques and models to describe, analyze, and predict financial markets, instruments, and
phenomena. It involves constructing mathematical representations of financial variables,
relationships, and processes to gain insights, make predictions, and facilitate decision-making
in the field of finance. It helps in pricing derivatives, developing trading strategies, risk
management, and asset allocation. However, it's important to acknowledge that models are
simplifications of complex reality and rely on assumptions, data quality, and ongoing validation
and refinement to maintain their usefulness.