"I was enthralled not only by the academic opportunities but also by the city and university in general"

Can you please introduce yourself and tell us a little bit about your background?

- I was born and raised in Ethiopia in a broad and religious family and attended primary and secondary school in the ancient city of Harar. I then enrolled at Addis Ababa University's College of Commerce to pursue a degree in finance and development economics. This program included introductory courses in economics, finance, management, banking, and insurance, as well as advanced courses in development economics, which analyses standard economic theories in the context of developing nations.

A week after my graduation, I came to Sweden. Although I had always wanted to pursue further studies, I was unable to do so right away. After spending a few years learning the language and looking for job opportunities, I found an international program in financial engineering at Mälardalen University that caught my attention. My initial exposure to econometrics and the introduction to financial markets and instruments during my bachelor's degree in Ethiopia had sparked my interest in quantitative analysis and finance. Since I did not have the necessary mathematical background from my previous BA to go straight into the master's program, I decided to take the five-year program, which could also be split into a BSc and an MSc. The financial engineering program is an applied mathematics that focuses mainly on the analytical and numerical analysis of financial instrument models.

What motivated you to choose Umeå and Department of Mathematics and Mathematical Statistics for your PhD? 

- I was initially drawn to the particular field of study, but upon arriving, I was enthralled not only by the academic opportunities but also by the city and university in general. Before relocating to Umeå, I lived in Västerås. The trip to Umeå was quite an experience, especially considering driving long distance in the harsh weather conditions in late November. However, the journey allowed me to witness the captivating landscape of the country, particularly as I arrived at Sundsvall, where the terrain features a blend of high and low areas.

  Can you describe your research? 

- My research seeks to use the principles of financial mathematics, which are commonly used to analyze financial options, to address real options. A financial option is a contract that gives the holder the right to buy or sell an underlying asset at a predetermined price within a certain future time. However, real options involve decisions that may not involve buying or selling the asset. For example, in the optimal capital structure problem, a shareholder has a limited liability and may decide when to default on debt obligations. This problem can be modelled as a financial option, but finding analytical solutions often requires making assumptions that are not realistic for simplification. Our research aims to use financial mathematics as a tool to relax some of these assumptions and solve the problem numerically, possibly in multi dimensions.

Can you describe a typical day in your life as a PhD student? 

 

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- I spend my time reading literature related to my research and the courses I take (I often continue to read after the conventional work hours as well), preparing for my teaching assistant duties, and responding to emails,
including inquiries from the students I assist. I think it is a great opportunity to be a teaching assistant. The preparation process and the students' insightful questions help me further my understanding. I'm also thankful to the course instructor (Markus Ådahl) for generously sharing his expertise and taking his time to clarify things that I struggle with. 

What are your career goals post-PhD? 

- Following my PhD, I aim to get practical experience in the industry. Additionally, I am interested in research and may look into potential opportunities in that area.

What do you like to do for fun when you're not working on your PhD? 

- Occasionally, I enjoy listening to music and watching films. I often chat with my family and friends during my leisure hours. I also stay informed by following the news, though it's not always uplifting. My remaining spare time is dedicated to cooking and various household tasks.

What advice would you give to someone considering a PhD here in Umeå? 

- Given that I'm in the first year of my studies, I may not be the best person to offer advice for those considering a PhD in Umeå. However, I believe that for any PhD journey, maintaining a curious and open mindset is beneficial. Take on the challenges and opportunities that arise, and don't hesitate to seek guidance and support from others. With dedication and a desire to learn, your experience in academia will be rewarding.