Financial Models

Quantitative Financial Modeling (Issue I)

In the realm of financial mathematics, models play an indispensable role in capturing the inherent complexities of financial markets. From predicting market volatility to pricing intricate financial derivatives, these models offer quantitative analysts and traders the tools to understand, measure, and act on the diverse risk and opportunity landscapes. This document delves into three pivotal financial models: the Heston Model, Jump-Diffusion Model, and the GARCH Model. Introduced by esteemed financial mathematicians and practitioners, these models stand at the forefront of quantitative finance, bridging theory with practical application. With the evolution of technology, especially the advent of quantum computing, their relevance has only augmented. Let's embark on an explorative journey into the depths of these models, uncovering their mathematical intricacies, applications, and future implications.