Do someone tell me which one is better between master in finance and master in financial engineering?

<t>I think that Bid/Ask spread and other transaction costs is importantpoint of research. In high frequency trading (intraday) they are crucially affect on all models and strategies. Sofisticated modelling here can significantly extend classical schemes where all transactions costs are neglectable.S...

thepay, What degree did you obtain from Oxford? Master or Phd? Is it in finance or in pure science? What kind of jobs are you looking for?

My resolution is economic booming and being a happy guy everyday.

Vincent, You can get it from the journal of finance 50, 719-737.But there is the other paper by the same authors called "Lattic works",Risk 8, 65-69. Do anyone have this paper? Please upload it or send me one! Thanks!

<t>If I'm stuck with a non-Markovian model, my response is change the model slightly toget a Markovian model which has the same sort of qualitative behavior ... since I'm going to calibrate the model exaclty to market prices, the two models will effectively give identical results. >>Pat, The previou...

Paul, Scholar, Omar, Martingale.... Do you give response to Vincent question?

<t>what are the criteria for a bank to buy off the shelf pricing software versus building its own. >>The criteria are as follows.1. Is there available software in the market?2. The cost efficiency. (buy one is alway cheaper than build one)3. Are they need alway updating their model?4. Which one is m...

Mahoffer, I see! Paul is the best guy of researcher and teacher. The explaination is very clear and easy to understand. As for me, I am just a student. If I gained one tenth of Paul's knowledge in derivatives, I would be very happy and satisfied.

<t>For Financial mathematics, We adopt efficient market of hypothesis. i.e all information are reflected on the current stock price. However, the market is not really equilibrium all the time. There sometimes is a quite small arbitrage with short-lived(few minutes). This phenomenon will diappear ver...

<t>Black-Schole model for option pricing, HJM model for interest rate modeling. However for credit risk modeling and illiquidity modeling, there are not benchmark models so far,so future research should be concentrated on credit risk modeling and illiquidity modeling. Do anyone agree or disagree? </t>

David, Thanks for explaination!

mathworld.wolfram.com is a very good website for anyone who need help of maths. It likes a dictionary of maths.

Paul, Congratulation! Actually, this forum is very successful! The members include students, practioners, academics,quant., so this forum is a bridge for communication among different background of us coming from every corner of the world.

I think people in the front office has a higher salary than those in the back office. The trader earns money from the bonus, but not really due to arbitrage. The arbitrage exists very rare! one of my friends (a portfolio manager) told me he found "the fools" one time in three years.