In this talk we shall first give a brief overview of financial engineering, and then discuss various stochastic models, including pricing of path-dependent options by using the classical random walk and renewal theory, and various stochastic models for stocks and options. The title of the talk indicates that our goal is to present the results in such a way that it may be not only of interest to mathematical finance people but also to the general audience of mathematical, statistical and financial communities; in particular, we promise that there will be no mathematical formula in the seminar, although hopefully it will be entertaining. By the way, if you want to understand the title of the talk, please come to the seminar.
 

Convenor:Aidan Sudbury