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Consortium for Mathematics and its Applications

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The Binomial Option Pricing Model

Abstract We present a review of the binomial option pricing model introduced by Cox et al. [1979]. The material is suitable for an upper-level undergraduate course in finance, mathematical finance, or mathematics. and can be covered in two to three...

Where Should You Study?

Introduction Where should you study? For a minimum of distractions, you should study in the library. But where in the library? I once worked at a college whose science library had a mezzanine floor with a row of study desks beneath and parallel to a...

Minimodule: Buying a House vs. Renting

Background In deciding where to live, people face the financial decision of whether to buy or rent. We analyze this question for a family considering houses in the $80,000 range. Based on the author's location in Texas, such a price would buy a...

The Stability of Boats, Triangular Configurations: The cos4 Rule

In Rublein [2015], we considered the stability of long boats with a square cross section. Here we study a long solid boat of uniform weight density whose cross section has an isosceles triangular shape. We are interested in geometric configurations in...

Modeling - Based Calculus with R / mosaic

Introduction: Software for Calculus The choice of software for teaching calculus depends on several objectives and constraints, including: • availability; • instructor experience; • graphics, symbolic, and numerical capabilities; • and steepness of the...

Policy Modeling

Modeling is equally important in social science as it is in physical science. Introduction We recently heard a colleague explain why mathematics and modeling are so important for interdisciplinary problem solving. The elegance of his comment struck us...

An Analyzable(Though Seldom Winnable) Card Solitaire

Introduction On the whole, standard card solitaire games notoriously resist the calculation of their winning probabilities. Yan et al. [2005] have said, in referring to what is commonly known as Klondike solitaire, "It is one of the embarrassments of...

Actuarial Present Value

Traditional actuarial functions in the world of insurance include pricing of an insurance product (life, health, or car insurance, pension etc.) and reserving for future benefit payouts to an existing policy-that is, estimating how much of the past...

Mathematics - In the Park?

Introduction I have often advocated that a mission of mathematicians is to help people to "see, seek, and speak" mathematics [Campbell 2002]. Doing so can be a matter of pointing out features in nature (e.g., Fibonacci sequence in sunflowers) or...

Embracing Data Science

Statistics is running the risk of appearing irrelevant to today's undergraduate students. Today's undergraduate students are familiar with data science projects, and they judge statistics against what they have seen. Statistics, especially at the...

The Optimal Can: An Uncanny Approach

Abstract We examine a novel variation of the classic cylindrical can optimization problem encountered in almost every first-semester calculus course: to minimize the cost of the material used to make the can, which amounts to minimizing the surface...

A Stable Cup of Coffee

Abstract We investigate the optimal amount of liquid to place in a container, such as a soda can or cup of coffee, so that the angle at which the container will tip over is as large as possible. Classic investigations assume that the water is static...

When Will a Soda Can Balance?

Introduction Have you seen the party trick where a soft drink can balances on its edge? The bottom edge of a standard aluminum 12-ounce beverage can has a fairly wide bevel on which the can will balance when partially full. We model the geometry of the...

The Utility of Recreational Mathematics

Prelude and Vademecum This article is an amplification with illustrations of a write-up of my talk at the University Mathematics Teaching Conference at Sheffield Hallam University, 7 September 1999 [Singmaster 2000]. That talk was based on earlier...

Modeling-First Approach to Teaching Differential Equations

Abstract We cite broad support for using modeling in mathematics coursework in undergraduate studies and address the possibilities for doing so in the undergraduate differential equations course. We describe one current support community, SIMIODE,that...

SIMIODE Modeling Scenario : Fish Mixing (Teacher Version)

Abstract: This activity gives students a chance to build a differential or difference equation model similar to standard textbook mixing problems.The activity uses tangible objects ("fish") and a student-designed restocking and fishing plan for a lake....

Modern Algebra : Time for Change

Introduction So what is modern about Modern Algebra anyhow? It is an old subject, to be sure, and calling it "modern" in the sense of "recent" is a misnomer. The first conception of an abstract group-a set of elements whose natures were completely...

A Modified Massey Method to Rank Players on the PGA Tour

Abstract We modify the Massey rating method so as to rate and rank the players in the Professional Golf Association (PGA) Tour based on their individual performance. We then compare the accuracy of the Massey rankings with the accuracy of the Official...