Tooltip
These resources have been reviewed and selected by STEM Learning’s team of education specialists for factual accuracy and relevance to teaching STEM subjects in UK schools.

Modelling the Market: Part Two

From the Integrating Mathematical Problem Solving project by Mathematics in Education and Industry (MEI), this activity shows that derivatives can help to manage risk. The market in derivatives has grown enormously in recent years. On average, speculators break even. The mathematical ideas covered are:
• Comparing a model with reality
• Normal probability plot
• Expected value

Show health and safety information

Please be aware that resources have been published on the website in the form that they were originally supplied. This means that procedures reflect general practice and standards applicable at the time resources were produced and cannot be assumed to be acceptable today. Website users are fully responsible for ensuring that any activity, including practical work, which they carry out is in accordance with current regulations related to health and safety and that an appropriate risk assessment has been carried out.

Information on the permitted use of this resource is covered by the Category Three Content section in STEM Learning’s Terms and conditions.