What Finance Project Should I Choose as a Physics Undergraduate?

[samir9]

Hi,
I'm a second year Physics Undergraduate (just completed my second year), and next year will be doing a project based around finance (which I want to get into after I finish my degree). I will be taking extra courses next year to supplement my aim (these courses include derivatives, equities, etc).

The thing is I don't know what I should base my project on, the standard abtract for the project is:

The Physics of The Black-Scholes Model (Dr OA Soloviev)

The student will have to investigate the similarities between the financial Black-Scholes model with market corrections and physics. The same projects can be also done by 4th year students. In this case, the level of complexity can be lifted up.

The project supervisor has his own company based on finance+physics:

http://www.ph.qmw.ac.uk/~oleg/MyHome.htm

http://www.econophysica.com/

Now he said I could either do the Black-Scholes Model, or pick something else, (such as the Monte- Carlo model), does anybody have any suggestions at to what I should pick? (bearing in mind I will be working from scratch knowledge wise (in the quant finance department), I do however have very good math skills, and can program C++) I'm also buying the book :

Hull, J.C.
Options, Futures, and other Derivatives

Which I've been told will be helpful. Because I want to get a good grade I will be starting the project over the Summer (it counts for 2 third year courses), and would like to get into good stead before my final year.

Thanks.

 

[ptabor]

As fate would have it, I also did an undergraduate degree in finance, as a backup.

As far as the Black Scholes model is concerned, I haven't read the paper in any great detail, but from what I gathered the solution to their option pricing equation looks like the heat flow partial differential equation, with some suitable boundary conditions (imposed by the finance aspect).

If your skills are as you say, then I think this could be quite doable.

 

[michealsmith]

Lol I Cant Help ..i Almost Did A Project On It..havent Though ...keep Checking ..u Might Find Someone Who Have Done The Exact Same One.