Answers » Categories » General Business

What is the meaning, scope, uses and challenges of financial engineering

1 Answer

Financial engineering is the process of creating new financial instruments and strategies, such as new securities, options and derivatives. It involves financial theory, the tools of applied mathematics, the practice of programming and engineering methodologies.

Financial engineering is often used to make pricing, trading and portfolio management decisions. Its goal is to control financial risk by utilizing combinations of securities. Methods of financial engineering can be employed by the securities, banking and consulting industries, as well as in corporate treasury and finance departments.

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question