Personal Statement

705 WordsJul 23, 20123 Pages
Statement of Purpose Although many students consider financial mathematics to be a difficult major, I have firmly made up my mind to enhance my knowledge in it. As a student majoring in applied mathematics at the University of Illinois at Urbana-Champaign, I see financial mathematics as a way for me to combine my interest in risk management with my strengths in mathematics. The concepts of risk and uncertainty go well beyond simple contemplations of probability and instead speak to the very processes that govern human enterprise and business. Risk exists everywhere in the financial and commodity market. In order to manage risk, people have created various financial instruments. A typical one is the option. With the help of the famous Black-Scholes model, we can calculate the price of a call or put option. Of course, we can also use the Binomial Tree Model to derive the option price. Both methods require assumptions of no-arbitrage and balanced market. But if the market does not match these assumptions, we will struggle to derive the option price. I would like to get a thorough understanding of arbitrage pricing of these financial instruments. The more I learned in this field, the more I’m convinced to pursue my future career in finance, specifically in risk management. My short term goals are gaining a sound and firm grounding in finance and then finding a job on Wall Street. A master’s program in financial mathematics would provide me with a more comprehensive grasp of my desired future job and would hopefully open up a door to Wall Street. My long term goal is to be an expert in the risk management field. As a student majoring in Applied Mathematics and Statistics, my broad range of study has laid a firm foundation for further study within the discipline. I wish to obtain a deeper understanding of various financial instruments and how to choose and use

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