Quantitative Finance
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Abstract
Quantitative fi nance is a fi eld that has risen to prominence over the last few decades. It encompasses the complex models and calculations that value fi nancial contracts, particularly those which reference events in the future, and apply probabilities to these events. While adding greatly to the fl exibility of the market available to corporations and investors, it has also been blamed for worsening the impact of fi nancial crises. But what exactly does quantitative fi nance encompass, and where did these ideas and models originate? We show that the mathematics behind fi nance and behind games of chance have tracked each other closely over the centuries and that many well-known physicists and mathematicians have contributed to the fi eld.