Mathematics in finance and hiding lies in complexity

Sir Andrew Wiles

Sir Andrew Wiles

Mathematics has a deep and rich history, extending well beyond the 16th century start of the scientific revolution. Much like literature, mathematics has a timeless quality; although its trends wax and wane, no part of it becomes out-dated or wrong. What Diophantus of Alexandria wrote on solving algebraic equations in the 3rd century was still as true in the 16th, 17th, or today. In fact, it was in 1637 in the margins of Diophantus’ Arithmetica that Pierre de Fermat scribbled the statement of his Last Theorem. that the margin was too narrow to contain[1]. In modern notation it is probably one of the most famous Diophantine equations a^n + b^n = c^n with the assertion that it has no solutions for n > 2 and a,b,c as positive integers. A statement that almost anybody can understand, but one that is far from easy to prove or even approach[2].
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