Introduction to Financial Engineering

Financial Engineering is the application of tools from finance, mathematics, computer science, and economics to the solution of risk management problems. Financial engineering techniques are used to address problem areas such as derivative securities valuation, strategic planning and dynamic investment strategies. The increased pace of financial innovation has multiplied the need for highly qualified financial engineers in investment banking, hedge funds, corporate risk management and regulatory agencies.

For better or worse, Financial Engineering has changed the world fundamentally - and will keep changing it.

This is why it is important to understand how does Financial Engineering work, and what can it do. It is also important to understand certain important implications of the basic principles (fundamental theorems) of financial engineering, financial economics and financial mathematics for the real economy and financial markets.

The Financial Engineering encompasses the design, analysis, and construction of financial contracts to meet the needs of enterprises.

There is an increasing demand for professionals in this field, especially those trained in both the underlying mathematics/computer technologies and finance.