The equations of physics and finance resemble each other, but, though their syntax is similar, their semantics is very different.
In physics, theories stand on their own feet and can achieve great truth and accuracy. In finance, models are merely metaphors that try to describe humans by comparing them to physical systems
already understood via theories.
To forget that is to practice idolatry and suffer the consequences.
In this lecture Emanuel Derman will be talking about his experiences in both the financial and physics world while exploring the collision between human needs and desires, mathematical modelling and economics that has featured so dramatically in the recent financial crisis.
Registration from: 18:00.
Lecture begins: 18:30.
Welcome: Professor Sir Peter Knight, President, Institute of Physics
Expected conclusion: 20:00. followed by refreshments