Abstract:

In this talk I will give an easy-paced introduction to quantitative finance, specifically the pricing of options and hedging strategies. After beginning with the so-called binomial model, I will present the Black-Scholes formula and the Black-Scholes PDE. Then I will give my views on the burning question "What went wrong?", If time permits, I will discuss some alternate models for financial markets that go beyond the Black-Scholes model of geometric Brownian motion, and present some open problems