Financial Engineering Dictionary

Author: John F. Marshall
Publisher:
Publish Date: 2003-07-01
Features: Financial engineering is a science that combines financial theory, quantitative methods, and techniques used on Wall Street to solve complex problems and discover investment opportunities. This high-tech field began in the 1970s with the development of option pricing models. Today, financial engineering widely utilizes derivative instruments, including options, to construct financial products with unique investment characteristics and manage risks inherent in modern commercial enterprises. Although it is still a relatively new field, financial engineering is constantly evolving and growing in essence—just like its terminology.