Fly me: financial mathematics and low-cost airlines
The derivatives are financial instruments whose value changes in response to the changes in underlying variables. Originally, they were based on commodities and used to reduce risk from varying prices. This strategy is often called hedging. However as financial markets have become more complex it is more and more difficult to distinguish between old fashioned hedging and speculation. At present the derivatives’ markets are one of the most interestingfie lds of research in financial mathematics....