I wish to write my thesis in quantitative finance, but as I understand it, a thesis needs to have some sort of originality to it. You can't just take some theory written by others and just rehash it in your own words. You need to do something never done before.
How does one accomplish this in finance?
Because, in my head, when trying to come up with some ideas for a thesis, they all fall within the same structure of
- Introduce some problem (say, a pricing problem)
- Introduce methods to solve the problem .
- Apply the methods to some specific setting and compare.
Now, in step 1 and 2, you aren't doing anything original, indeed this part of your thesis is literally just an exploration of existing theory (unless you come up with your own theory, which is kind of unlikely in a master's thesis given you only have 3-4 months to do it).
In step 3, you can do something original by choosing a setting or numerical application which is not seen before (e.g. you can apply your methods to some index that it hasn't been applied to before, compare different countries or time periods, or something like that). And of course the fact that you are comparing a specific set of different methods may not have been done directly before either.
But that doesn't seem like a whole lot of originality.
So please, can anybody enligthen me on how one ensures that a master's thesis does something original and is not just an exposition of theory written by others?