Mathematical finance

Till the late sixties a banker’s life was the source of envy for most of us: 3–6–3 formula was all that was needed to explain it – borrow at 3%, lend at 6% and play golf at 3 p.m. Over the last 50 years this has changed in a big way – no one can dream of having a quintessential banker’s life any more. What were the changes that caused this dream-like lifestyle to evaporate? In what way are these changes affecting us? What are the common threads that are emerging and finally where are they likely to lead us? These are some of the points to ponder in this commentary on mathematical finance.