Derivatives pricing models and numerical methods for solving these.
Many models used in finance end up in formulation of highly mathematical problems. Solving these equations exactly in closed form is impossible as the experience in other fields suggests. Therefore, we have to look for efficient numerical algorithms in solving complex problems such as option pricing, risk analysis, portfolio management, etc.
Computational finance, generally referring to the application of computational techniques to finance, has become an integral part of modeling, analysis, and decision-making in the financial industry.