The projects aim to address three major challenges in modeling long-dated (maturities of 30 years more) foreign exchange (FX) interest rate (IR) hybrid derivatives, namely (i) the strong sensitivity of the products to the skew of the FX volatility smiles, (ii) their very long maturities, and (...

# Financial Mathematics

Financial Mathematicians use sophisticated mathematical techniques to measure and manage risk in the financial marketplace. Topics of study include the pricing of financial contracts such as financial and real options, management of investment portfolios, capital adequacy requirements for financial institutions, valuation of firms, optimal capital management and optimal contracting.

The market demand for financial mathematicians is very high. Graduates from the University of Queensland have continued into excellent careers in investment and retail banking, insurance and actuarial, risk management in the electricity and mining sectors, and funds management.

Graduate coursework students may enrol in a Masters of Science in Financial Mathematics, that incorporates courses in financial mathematics, finance, economics and econometrics. Undergraduate students may take courses in financial mathematics as part of a major in mathematics or statistics.

Research studies may be pursued at honours, MPhil and PhD level.