The techniques of financial engineering have become indispensable to a wide spectrum of business activities, including investment banking, commercial banking, corporate finance, capital budgeting, portfolio management, risk management, and financial consulting and planning.
The principal focus of the Laboratory for Financial Engineering (LFE) is the quantitative analysis of financial markets using mathematical, statistical, and computational models. The goal of LFE is not only to spur advances in financial engineering, but also to develop better ways to teach students and executives how to apply financial technology in corporate settings.
Students are encouraged to participate in current research projects, which include the empirical validation and implementation of financial asset pricing models, the pricing and hedging of options and other derivative securities, risk management and control, trading technology and market microstructure, nonlinear models of financial time series, neural-network and other nonparametric estimation techniques, high-performance computing, and public policy implications of financial technology. LFE is a research lab for students currently enrolled at MIT and does not offer any degree programs.
Professor Andrew W. Lo is the director of the laboratory. For further information, contact Jayna Cummings, Room E62-611, 617-258-5727, firstname.lastname@example.org.