MINOT, N.D. (Nov. 12, 2015) — Hriday “Day” Thakkar, Minot State University senior, recently received the Outstanding Presentation Award at the Mathematical Association of America’s MathFest 2015. Annually, MAA awards 10 to 15 students an Outstanding Presentation Award. In the MAA student paper sessions, Thakkar presented “On the Numerical Solution of Black-Scholes Option Pricing Model.”
In these student paper sessions, students give 15-minute presentations on their research to an audience of mathematicians and other conference attendees, some of whom are judges and provide the students with a score and feedback.
“It was a humbling experience for sure and their (MAA) acknowledgement is quite motivating,” Thakkar said.
Thakkar, a mathematics major, performed undergraduate research with Narayan Thapa, former MSU faculty member. The Black-Scholes Option Pricing Model, one of the definitive topics of investigation in mathematical finance and has been applied widely by investors for the purpose of “hedging,” a trading strategy used to minimize financial risk.
“In my work, I applied the Finite Difference Method, a numerical method, to solve the linear Black-Scholes equation for pricing European Call and Put options,” Thakkar related. “Later, I analyzed the numerical results in the context of consistency, stability and convergence, which are three notions that can help us understand how reliable and efficient our numerical method.”