Adams Prize 2002/3 winner announced


The University of Cambridge has announced the winner of one of its most prestigious prizes.

The Adams Prize is awarded each year by the Faculty of Mathematics and St John's College to a young, UK-based researcher doing first class international research in the Mathematical Sciences.

This year's topic is Financial Mathematics, and the winner is Dr David Hobson, Reader at the University of Bath and EPSRC (The Engineering and Physical Sciences Research Council) Advanced Fellow.

Dr Hobson studied as an undergraduate and postgraduate at the University of Cambridge, and then undertook a postdoctoral fellowship funded by Record Treasury Management before moving to Bath in 1994.

His contributions to Financial Mathematics have ranged wide and far, and have included the use of coupling methods to establish price inequalities for complex pricing models, deep results on robust hedging whose implications have yet to be fully exploited, pricing and hedging of passport options, and pricing of real options.

Several of these are currently major topics in the subject, and Dr Hobson has made leading contributions.

Interesting results in theoretical probability, in martingale inequalities and Skorokhod embedding have arisen on the way.

Professor John Coates, Chairman of the Adams Prize Adjudicators, said: 'Financial Mathematics is a comparatively young application area of mathematics, dating from the Nobel-prizewinning discovery of the Black-Scholes option pricing formula in the mid-70s.

'The realisation that advanced mathematical techniques could solve difficult problems in finance was seized on with energy and enthusiasm in the years that followed, and the huge growth in derivatives trading which we have witnessed in the past 20 years has only been possible because of the mathematical framework which supports the pricing and hedging of these instruments. Challenging problems remain, increasingly at the interface with economics.'

The Adams Prize is named after the mathematician John Couch Adams and was endowed by members of St John's College. It is currently worth 15,000.

It commemorates Adams' prediction of the position of the conjectured new planet Neptune, through calculation of the discrepancies in the orbit of Uranus. Previous winners have included the physicist James Clerk Maxwell.


For more information, contact:

1.Katheryn Ayres, Faculty of Mathematics, University of Cambridge. Tel: 01223 337968; e-mail:

2.Alison McFarquhar, Press and Publications Office, University of Cambridge. Tel: 01223 332300; e-mail:

Reproduced courtesy University of Cambridge Press Office


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