Farid AitSahlia - Financial Engineering, Mathematical Modeling, and a Financial Crisis
Fyrirlesturinn verður haldinn þriðjudaginn 10. nóvember kl. 16:20 í húsnæði Háskólans í Reykjavík, Kringlunni 1 (gamla Mbl húsinu) í stofu K-5. Fyrirlesturinn verður haldinn á ensku.
Farid AitSaliah
Reykjavík Univeristy, visting professor
Risk Management and financial Engineering Laboratory, Dept. of industrial and Systems Engineering, University of Florida, Gainsville
Abstract:
Another title of this talk could well be "How a California Earthquake Rattled Iceland." In effect, I will present through a simple example, the basic mechanics behind the financial engineering (innovation) that enabled greater access to homeownership (and speculative real-estate transactions) in rising markets. When pushed to its extreme, this approach led to the recent spiraling effect that froze credit markets worldwide. Through this phenomenon, I will highlight aspects of mathematical modeling in finance in relation to business incentives.
This talk does not assume much: both financial and mathematical concepts will be kept simple, but a degree of comfort with quantitative reasoning will be helpful.
