SMU Professor of Finance Lim Kian Guan uses sophisticated mathematical tools to extract information out of options data so as to provide more accurate risk estimates. In order to use options data, however, some serious mathematical legwork is required. Although mathematicians and statisticians were the first to work on the problem of relating the two types of probability distribution, Prof Lim notes that the field has seen growing interest in the last decade from economists seeking to address anomalies that have so far eluded explanation.