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Content archived on 2024-06-20

From Stochastic processes to mathematical finance: learning to translate real-life financial challenges into mathematics and solve them applying modern probability theory

Objective

The proposal aims to establish Jan Obloj as an active researcher in mathematical finance. He is to master the new domain, which provides ideal applied counterpart to his theoretical research experience. The Fellowship will lead to articles in world-class journals and long-term projects and collaborations.

The field of mathematical finance is a cutting edge domain of applied mathematics. It is an increasingly important multi-disciplinary field involving business, finance, banking and assurance issues, which is based on modern probability theory. Jan Obloj will join the dynamic research group in Mathematical Finance at Imperial College and participate fully in its program, including seminars and rich interactions with industrial partners.

He will work together with Professor Mark Davis on hedging problems in incomplete markets driven by CGMY model. This elegant model which addresses fundamental flaws of classical Black-Scholes models is becoming an active and important research topic. However, only pricing under CGMY has been properly understood. Understanding hedging strategies will make the model usable and attractive for practitioners.

Analysis of CGMY involves Levy processes and time-changing, subordination and embedding techniques all of which Jan Obloj has mastered during his Ph.D. studies. Combined with Mark Davis world-class experience in valuation and hedging strategies in incomplete markets gives a unique opportunity for success of the project.

In the second year of Fellowship Jan Obloj is also expected to develop new projects and wider collaborations. With the proposed training, basing on his extensive research experience, he will acquire new knowledge and skills and become an active researcher in rapidly growing field of mathematical finance.

In consequence, he will gain fascinating research domain for years to come and scientific contacts and experience allowing to participate actively in the Research Community as a mature and independent scholar.

Fields of science (EuroSciVoc)

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Keywords

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Topic(s)

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Call for proposal

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FP6-2005-MOBILITY-5
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Funding Scheme

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EIF - Marie Curie actions-Intra-European Fellowships

Coordinator

IMPERIAL COLLEGE OF SCIENCE TECHNOLOGY AND MEDICINE
EU contribution
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Address
South Kensington Campus, Exhibition Road
LONDON
United Kingdom

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Total cost

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