#serious-discussion
1 messages · Page 97 of 1
no
all weve done so far basically is state that an augmented matrix is another way of writing a system of equations
sorry, maybe that’s thr wrong question. did they teach you how to apply a matrix to a vector
that doesn't need a proof?
It's just a matter of representation at this point
yeah thats not the thing im trying to prove tho
im trying to prove an equality thingy
$\begin{bmatrix} x_1^2&x_1&1\x_2^2&x_2&1\x_3^2&x_3&1\end{bmatrix} \begin{bmatrix} a\b\c\end{bmatrix} = \begin{bmatrix}y_1\y_2\y_3\end{bmatrix}$
Dragonslayer Sharp
if you apply the matrix to the vector, it is pretty straightforward to see
you have that
ax_1^2 + bx_1 + c = y_1
ax_2^2 + bx_2 + c = y_2
ax_3^2 + bx_3 + c = y_3
? whats that mean
u just gotta calculate and expand it out
this is just another way of writing that
oh
I don't see anything to prove here
idk
you said that given a system of linear equations, you can write it as an augmented matrix
what do you wanna do next
so like on my first row I have x_1^2 + x_1 + 1 = ax_1^2 + bx_1 + c
And I want to show that x_1 is equal to say a
and basically repeat this for the next two lines
Are you sure that’s what you want
I can't think of another way to state that the y expression coeffecients are solutions then showing that they can each correspond to one of the variables
the augmented matrix would be
x_1^2 x_1 1 | y_1
x_2^2 x_2 1 | y_2
x_3^2 x_3 1 | y_3
My teacher and my textbook have no seperation between colums 3 and 4, is that just notational?
that's not what the first row represents
the first row represents
ax_1^2 + bx_1 + c = y_1
it's a matter of definition
I know this is true because thats from the parabola, but i feel like it just ignores the whole left side of the augmented matrix?
so i was subbing that in for y on the righr side of the matrix
this equation literally represents the first row of the augmented matrix
they tell you the same thing
no info is lost or gained
The first row initially doesn't have any coeffecients on the left side though? And now this is introducing coeffecients that weren't initially there
so now the coeffecientless line ceases to exist?
the coefficients are encoded in the columns
first column represents a
second b and third c
4th just represents the right hand side of the equations
Wait why do the columns represnt the letters
I guess I just missed that in class today somehow
there are 3 representions: systems of equations, vector equation and augmented matrix
And they are just different ways of representing the same thing as far as intro to linear algebra goes
ok
Well I need to go and try to rush through the rest of my HW lol
Ill see what I can throw together tomorrow knowing that the columns represent each coefficient
I guess there's a 4th representation that involves matrix multiplication which someone has shown already
What do we use the equation E=mc(squared) for?
nukes
XD
wow
But for the mass part of the equation, where do we get the mass from
do we apply that equation to objects to find their potential energy?
it's not their potential energy
Is the equation just a statement?
black name
He got cohonorable
Looking at history, looks like he made some poor joke and got muted for 2 days by Eric
cohonorable.
I want a rank too 😦
yeah, give my man the black role
need to perform a ritual
sacrifice all your belongings, and devote yourself to this server
that is the first step
the next steps are known only to the current holders of the title
ordinary humans get purged if they know the truth
How does one apply for staff

lmao
don't ping mods unnecessarily unless you wanna get muted
for general questions use modmail
they are not here for answering general questions
we arent looking
Figured, such a large server to be looking for staff
are we
what is 88+22
i dont wanna use a calculator
but im too dumb
jk
im bored
hi
uwuw
haja
heje
hehehe
kkakakak
come back tomorrow, this isnt your personal circus
How do I apply for Janitor
you don't
get a PhD
is that really true? 5000?
There are 300 million people in the us though
idk if 5000 is really that many considering that
Well, 5000 janitors with a phd.
how many janitors are there total tho
Imagine studying for 7+ years only to become a janitor.
I feel like 5000 isn't that big a number though
It's just the fact they have phds is concerning. By magnitude it's small.
was posted in 2010
damn
damn
That's a lot of text.
Sounds like a skill issue
Janitors in the US earn around ~$30000 annually, apparently.

I'm from a third world country so can't really relate lol.
This guy 100% sniffs the painted floors
Aight time for my orientation for my course I'm teaching
Awesome. See ya!
one of the cooks I used to work with at pizza hut had a PhD
tfw you lot
yeah you lot, nuffin to do with me
is "a living thing is a thing made out of living things" a good recursive definition?
could it be disproved?
its not a statement in the mathematical sense, so its "not even wrong"
i.e. cant be proven or disproven
oh I see
First off I would like to say that this definition can be proven bull
Because at the beginning of the FIRST LIFE FORM
it was made of nonliving things
And yes I do mean cyanobacteria
could it possibly be infinite?
Wdym
could there be no first?
There has to be or atleast a few
I am weak at math so maybe it isnt posibble
Idk how even the first life form came to be
My theory was that elements were bumping into each other by solar energy and eventually and accidentally created cyanobacteria with dna
I think there is
There is either what I just said above
Or aliens was like “hey this looks habitable lets pop in some bacteria so they can evolve”
To answer the original question though, no it is not a good definition lol
It gives no info as to whether something is a living thing or not
its a value which is true or false
do I have to give a way to find how why its that way?
Yes
It's not even true or false
Or a way which gives a starting part
(It’s not recursive since there’s no base case, for one)
oh yea
Also “made of”
e.g. nothing is a living thing doesn't contradict this definition
It sounds ok to me
I wanted to get to that actually
yee I see
We are all electric signals in the matrix
my defenation is bad
cool
Hm. What would have happened, if Neo took both pills in Matrix?

Splits into two people
no
Why can't someone who speaks english writes these questions
the veolocity vector $$\vec{v}$$. At t = 4.00 s,
One person
this is written clearly and simply
at t = 0
Do you know what a full stop / period means. Its basic english punctuation
😞
It means the end of a sentence
Youre only allowed to complain about the lack of paragraphing here and even that is kind of justified
This is clearly written chief idk
Ruthless
English is super difficult
brutal, but correct. This is pretty clearly written
I agree, it's clearly written, and there's no fault here on the author of the question. Reading can be hard sometimes though.
$20 moment
It’s easy for me.
FYI I was born in the USA 😁
You know what is a hard language. Chinese
It's super difficult for me
Even Chinese people still need to learn a lot of characters they don’t know
Where you from?
中文也很难
Lol coincidence haha
usa
But it’s true tho. Be completely literate in Chinese is hard
well american english will be easy for you but maybe not british english
I know hood British. Like Init and bruv
Neither are easy
LOL
IKR
I can talk to roadman from Birmingham
lol
I’m gonna be carrying a kitchen knife. Those Brit are gonna be scared
Extra sharp too
Gordon Ramsey knife I got that
so if a roadman asks: you want to get sheffed bruv?
you reply:
I wanna be a chef!
I say go back do your a levels bruv because idk wtf you talking about
no it means do you want to get stabbed
then you get sheffed bruv
Even if he stabbed me. I will keep dissing on his english
xD i just mean that would be my response if someone asked me if i wanna be cheffed
Oh lol
ello ello ello
@split pawn @solar hawk https://www.youtube.com/watch?v=7rqKcqx5WKs did you two make a submission?
Enter as a judge here: https://some.3b1b.co/
Last year's video about the Summer of Math Exposition: https://www.youtube.com/watch?v=cDofhN-RJqg
3blue1brown is a channel about animating math, in all senses of the word animate. And you know the drill with YouTube, if you want to stay posted on new videos, subscribe: http://...
Nah
Afaik
Wow
Ok, so I've been digging into Linear Algebra Done Wrong (LADW) for some while now. I found that the book skips some parts in the chapters. This makes it difficult when doing the exercises. Does anybody have some alternative book recommendation?
It talks aboout extra credit but doesn't mention any studies
just
"They said this"
and "this person also said this"
really low quality textbook.
Ohhh, It's written by first year college students. that mus be why
Wait, skips what?
I thought that book was generally really good
I think it is reasonably good for self study
I like that book a lot
But Linear Algebra Done Right is also a good linear algebra book
Yes
Yes, otherwise a great book
Might give it a shot then
Another reason I might struggle with the book might be, that I struggle with self-learning. Who knows?
It can definitely be difficult, but ask any questions you have in this server #linear-algebra :)
someone trying to help me with 11th grade math pls
!help
Please read #❓how-to-get-help
If they're struggling with LADW though, I can't imagine they'd appreciate hoffman kunze

How do you prove that f(-infinty)=0 and F(-infinity)=0, if f(x) and F(x) are a pdf and cdf respectivly
or is this not true?
I assume you mean the limit as x→-inf f(x) = 0
In which case
yes
Let's say it's not zero, then what does it look like?
the area would be >1
yeah it would have infinite area
IDk how to write that more formally
Do you know about epsilons and deltas?
a little bit
How do i get better at writing math
practice
If you want to learn how to write online, you can learn latex
$$\int u'v = uv - \int uv'$$
One person
I know latex :(
I'm a current cs undergrad
I'm dodging more towards data analysis than web development
What should I do ?
How should I decide
To skill on ?
Probably go to dats analysis if you want to and its not too much of a burden to move
There are big data frameworks you can look into, such as Hadoop, though I'm not sure what exactly is hip these days
arrow datafusion is hip :]
that’s not a serious recommendation btw
arrow by itself is pretty hip though
datafusion is a WIP
I think more ppl are heading towards web development or front end, ryt ? Best to go on data analysis ?
backend development jobs are plentiful, I’m not sure where you got that idea
I mean all the current students are heading that way
everyone needs engineers to manage their stuff that’s been deployed to the cloud
Cs
Ultimately shouldnt matter if you are looking for money both are employable
You are mentioning popularity
Have u graduated
Yea
Yea
I wanted to learn freelancing but how can I study skills and my subjects and sleep
Put ohone on airplane mode
I'm sorry I'm late, I was busy
https://www.desmos.com/calculator/ambdlq1a8i
I did the thing.
That's cool!
I'm actually gonna take a break now
I saw yours and tried to replicate it.
Mhm
Oh.
Well, have a good break. I'll try to do stuff with desmos in my spare time.
What's a good TPU for mathematical calculations?
what's a TPU?
Chatgpt is terrible at maths. I have even experienced it getting the order of operations incorrectly.
and Physics
yeah
hello
Hi
BOO!
Li, I know you're reading this. Fuck you kys
why will you type that?
This server is awesome btw
Yes
concept idea thingamabob
problem: i want a reliable prediction of the weather where i live
weird solution: i let people buy a prediction from me. if their prediction about the weather is false, they don't get back the money. if their prediction about the weather is true, i pay them a pre-agreed sum of money. predicting harder-to-predict events correctly gets you more money.
why: people who are able to predict the weather better I pay more, people who can't predict lose money by playing
This exists
CME sells whether derivatives
The downside is that they are very expensive

TPU's are only good are tensor operations
for general purpose maths calculations you need a CPU
HUH?
I never heard of tpu
Can't you vectorize most math
Is it same as gpu?
nope
I guess you can, I am not very sure actually
Lol
Tpu is buzzwordy
Also no way of knowing much about them
They are proprietary
Actually they wrote blog posts about them
fuck cme 🖕 their data feeds are the most complicated mess I’ve ever had to write code for
Its just a gpu but for higher volume matrix inputs is what the blog post is reading
Can you explain more?
basically yeah
And they have a unit for activation functions
Idk exactly how it works im still reading
their data feeds use some open source format they named Simple Binary Encoding or SBE. you can’t write a parser for it, it’s too complicated, so you have to find the xml schema definitions and plug those into their code generator
to get the xml files u have to access their ftp server, which also blocked me because I accessed too many pages too fast, so i had to access their ftp server through incognito mode and click around the blurred sections
and their rust SBE code generator is like one of the worst things I ever had to work with. it was also somewhat new so maybe I’m being harsh. but it was like, astoundingly hard to work with
yeah they stream their live data encoded as SBE
How much does it cost?
Is it like a subscription service?
Idk the pricing details, someone at my company worked it out I guess
I didn’t buy it myself
the data is valuable but handling it was such a pain
maybe look for a data provider with a websocket endpoint
Is this found on kaggle
Idk what kaggle is
Website for stuff relating to handling data
maybe they have some material on websockets
websockets are high level so you don’t have to deal with sockets and IP packets and stuff
and usually websocket servers transmit json (though they can technically transmit anything)
Im confused
I want to deal with this
But then ig my goal becomes more complicated
yeah if you just want to handle data in real time you don’t need to deal with networking at that level
but it is fun if you need efficiency
then you can explore different settings and different ways to use the Linux networking stack
CME and other data feeds use UDP because they can transmit it via multicast, which is more efficient when transmitting one-to-many
also because of the ultra low latency requirements I guess
Praise efficiency not disdain
you can have efficiency without garbage like SBE
none of the other SIPs do what they do
they only use SBE because they have like a bazillion different feeds and they wanted a generalized approach
what are they actually selling? i went to the website and it has too much jargon for me to understand
chatgpt explains it as "its basically insurance against bad weather"
maybe chatgpt is wrong maybe not, but the core of my idea was buying information from anyone who can produce it
Do not trust ChatGPT, ever. Here is an actual explanation, found by something just as easy to do: googling. https://www.investopedia.com/terms/w/weather-insurance.asp#toc-weather-insurance-vs-weather-derivatives
what did you google
The words "what is a weather derivative." Hope that helps in the future.
oh right i saw the investopedia article for weather derivative
but like
it opened
"A weather derivative is a financial instrument used by companies or individuals to hedge against the risk of weather-related losses."
i already don't understand what that means
so i ignored the rest of the page
(because its presumably going to expand upon that idea)
do you understand what derivative instruments are? eg options and futures
answer the question
no
the common example is a farmer purchases a contract with a buyer to sell their crop at a fixed price on a certain date. so if the price of the crop crashes, they can still sell at the original price. actually this is called a forward contract but futures are similar I think
ok forward contract
because this protects the farmer in the event of a market crash, the farmer has to pay an upfront cost for that protection. which is the cost of the contract
so you don't exactly know what future is but you're saying it is similar?
that makes ense
I know they are pretty similar, in that you enter a contract to buy or sell an asset at a certain price and you can’t back out (unlike options)
I think futures you can buy or sell at a range of dates, whereas forward contracts have a fixed date. but I skimmed that on Google 2 minutes ago so idk if it’s correct
also futures are standardized and traded on exchanges unlike forward contracts
well, the main idea is hedging, which is what the farmer is doing
he is hedging the risk of adverse market conditions for his crops
hedging is what what what now
from conext i pick up that hedging is just any sort of contract to try and make revenue(right word?) more stable?
no, hedging is more like you offset the risk from one asset by purchasing another asset that moves in the opposite direction
moves?
sorry, I meant the price moves in the opposite direction
so if one asset falls, the other rises and your portfolio doesn’t get hurt as much
OK so in the farmer example the farmer owns crops that they can sell but they can also sell anti-crop weather
if there were an asset that was correlated to the weather, he could purchase that, so the weather asset would rise if the weather ended up being bad for the crops
so if his crops are harmed by weather, the weather asset makes back the money he lost from bad weather
ok "A weather derivative is a financial instrument used by companies or individuals to hedge against the risk of weather-related losses."
financial instrument
what is that
sounds abstract
just a fancy word for thing that is bought or sold by people in financial markets
it is a very broad term
it includes stocks, bonds, index funds, all kinds of derivative instruments (options, futures, etc) and a bunch more
does this relate to the "derivatives (finance)" that i looked up on wikipedia
or are they just named the same thing
yes that’s exactly what we’re talking about
derivative in finance just means some asset whose value is derived from the value of another asset in some way
so, the fair price of the farmer’s forward contract depends on the current price of his crop on the market as well as the terms of the contract (delivery date and agreed upon price, or delivery price)
eg if his crop goes down in value, suddenly the contract becomes a lot more valuable because it lets you sell at a higher price than the new market price after the drop
ok I don't understand how weather derivatives are related to derivatives
well, which part is confusing you?
iiuc, you purchase a weather-related asset whose worth has negative correlation with another asset you own, that weather-related asset is an example of a "derivative", why?
OH cause the price of the weather-related asset is derived from the asset you own
not price
value
right?
well you might not even own the underlying asset, but yeah more or less
and price = value, or at least price = someone’s opinion of the value
(plus some markup I guess)
Not just the price, but everything
It's an instrument built upon another
?
also this makes the word "derivative" always applicable (i.e. useless) to a financial instrument until you start talking about a particular context, right?
how would it be always applicable?
"derivative in finance just means some asset whose value is derived from the value of another asset in some way"
surely you see assets' values not being independent like alll.. the.. time????
that’s a good point, but you could argue those relationships are not always causal, and in any case usually the relationship is set in stone in a contract or deal of sorts
Derivatives are instruments that let you profit from changes in the underlying asset without trading it directly. Typically involves the promise of future delivery of some commodity or set of cash flows at a set price
hello quants
does anyone 'get' risk-neutral probabilities 
im failing to pick up intuition 
I implemented binomial options pricing model and I don’t get it either 
I have a theory that the majority of quants don't get what they do, but do nonetheless
From the perspective of black scholes, I remember being confused that you can omit drift in the underlying from the calculation or just assume it’s the risk-free rate, but iirc the result doesn’t change
but idk how that generalizes to models besides the simple black scholes pricing formulas or the binomial options pricing model
what is the homework problem you’re stuck on
what.
what
I assumed u were doing this for homework or something. nvm
my homework is to make a few bucks
Options and futures for things like cooling/heating degree days which measure how high or low the average temperature of the day deviates from a selected baseline from utility companies
So if I buy a hdd(heating degree day) future this means that at a certain day in the future when the contract matures I will either gain money because the temperature is hotter than the baseline that was set or lose money in that I wont get the money back after the bet. Usually these maturity dates are further into the future so they arent easy to predict and are used to hedge against smaller losses related to temperatures
An example cme mentions is if you expect to run cooling in a building more than expected you can buy cdd to hedge against the potential costs of cooling on those especially hot days
I think the concept is to have a fair pricing( when taking into account investor risk preferences) for a derivative assuming no arbitrage exists
This is most definitely false by the way
I have two friends working in the industry and they do have great imposter syndrome but they definitely understand the math behind the finance
Maybe they are exceptional but they arent frauds
Its kind of insulting when you work 50+ hours a week and you give up a lot of freedoms to try and do your best are your job and someone tells you that you are a fraud
round 20994 to three significant figure
!help
Please read #❓how-to-get-help
love
in a very rough intuitive sense, you can think of the risk neutral probability distribution as how market prices imply future price moves. we can look at this from multiple angles, with increasing complexity, but as a very simple example to start with, suppose you want to punt on some sports event.
for simplicity let's say there are only 2 possible outcomes (win/lose). you've done your analysis and estimate that A is going to win at 60% probability ("physical measure"). i am the bookie and deal 1/1 odds (implying a 50% "risk neutral" probability), so you obviously think im underpricing A's likelihood to win and make the bet, for $100. you then have 60% chance (based on your estimate of true probabilities of events) of making $100 and 40% of losing $100 (i.e. in the long term you'd expect $20, but either way, one or the other of the events is going to happen and you may well lose money).
am i, the bookie, the chump? as long as i can find as much money to bet for A and as for B, i just pass the money from one side to the other - perhaps someone else thought the probabilities the opposite direction and took the bet for B. ive taken no market risk, I don't care who wins, i am "risk neutral". and in reality id skew the probabilities so that the implied probabilities for both sides don't add up to 1 (that's the bid/offer spread and that to the bookie is a guaranteed profit). and if money to one side adds up too much, id move my offers around to attract the other side to balance the bets out, or if i had a view on the physical probability and thought the market pricing was off, i could leave some market risk in the book.
that came out longer than intended
well, not really
it's quite far from the "strongest algebraic structure"
👍 thanks
I guess trying to convince myself the time continuous delta-hedge portfolio for an option gives me the same price as an option is 😵💫
and discrete is the way to understand it
fields shake before the might of the albanian group 🇦🇱🇦🇱🇦🇱🇦🇱🇦🇱🇦🇱
Wha..
switzerland
so as long as a perfect hedge exists and there’s no arbitrage, the risk neutral price is the one that is consistent with the market I suppose
ngl this no arb assumption is pretty sketch in practice isnt it
fees whatever
and other stuff
yeah actually you routinely see option prices that are impossible

especially for in the money options, oftentimes the bid is really low or the ask is really high, so much that it violates no-arbitrage bounds
though tbh those aren’t really real prices
well if they’re price bounds the market doesn’t follow them lol
that’s if you’re selling right
well the seller has to put down collat unless its some centralized thingy
I think there are some formulas to calculate the additional fee based on the risk they have to carry
and well id hope the centralized thingy would put aside collat regardless
as in im viewing it both sides.
Naively, I feel like the 'fair value' options in practice should generally be overpriced due to collat
I assume a market maker would buy slightly below the fair price and charge slightly above the fair price
isn’t that how they make money
ofc
but im just observing it makes more sense for the fair price to be above b-s
unless there are other factors u wanna throw in
but hmm call-put arb puts a limit on how much above it can be
I’m not that good at thinking like a trader, I mostly just shovel data around and do some basic calculations
oh nvm it dont
me neither 
I really wanna get a handle on bs and then see what other reasonable models u can come up with
weakening assumptions or whatever
why is there only an older version of okular for my ubuntu
the apt one is so old
and the one from snap is all shiny and new (yet older than the newest one)

just download the desired package version and install it locally
i mean the continuous case in terms of like formal math arguments goes very similar. you have some process V, you find a measure under which it (well, a deflated version of it) is a martingale, and ta-da you have V_t/B_t = E^Q(V_T/B_T | F_t) as per they must given martingale (i.e. the fundamental theorem of asset pricing). formally the m'gale representation theorem tells you there is a replication strategy
In terms of making a simulation to convince myself b-s pricing isn't bullshit
I just uh
ack my brain ded, ill have a proper think later
i mean that's all pretty formal as a lot of this stuff is. really it's all due to PnL Taylor expansion coming out to be second order in the move of the underlying, giving rise to a parabolic PDE from which all these probability interpretations stem from
my friend recommended me a book, stochastic volatility by bergomi, and I think that is more or less what he did in chapter 1 when he was explaining black scholes
the idea of lending out all your assets or spending all your excess cash on risk-free assets (which I guess is like lending out your cash) is kind of foreign to me, but it all sort of makes sense
it's a fine book but def not where you should begin if you don't know stoch calc or b-s etc
yeah that’s why I’m backtracking and grinding my way through probability and random processes by grimmett and stirzaker
bergomi was too hard 
someone gave me a list of books to work through so I’m just going to take my time and then revisit it when I’m ready
my no. 1 recommendation for the basics of fin math is baxter and rennie. it's very short, covers all the basic math (e.g. girsanov etc), but doesn't get bogged down in like formal definition land. if you want a version amped up in rigor, then id recommend shreve vol 2, but it's a much thicker book (skim through shreve vol 1, which is discrete time intro stuff, if you really want but it's not really a prerequisite esp if you've seen binary trees somewhere else). neither has any prereqs
I'm currently disatisfied im not coming up with a eli5 intuition (that satisfies myself) to understanding the risk free aspect of bs without going into measure.
How do I put it. Its kindof rare this is the case for the math ive seen.
What uve said so far is great, but at the same time slightly beyond me and I have to think
Like every other part of the price formula is very explainable to someone with an elementary math background
i mean, if it helps, in practice it's not like you use b-s in some sense to price an unknown option. you know the price of the option and you calibrate your b-s model (its volatility) to hit the price. what your b-s model will give you, then, is the delta (and by extension, the probability density function implied by the market prices you observe)
Yeah
Im still thinking about this purely theoretically in my attempts to understand - assume the perfect model
that's a simplification, but is to highlight that you could invert my prices/odds to probabilities (though i quoted prices, not probability), and the same goes for call options
i mean if you have the perfect model in the sense that your physical measure is the same thing as the risk neutral one, then all your intuition about the prices predicting future prices is true
if then what confuses you is the bit about drift, don't think about options, think about forward contracts. think how you'd price a forward contract via replication (where your entire market only has two assets, a stock and a bank account)
well the relevant part is where you have a drift term roght
you estimate a drift of mu
Alright.
same as you estimated a probability of A winning earlier to be 60% or whatever it was
yes.
note that this is one's forecast of the future
and a drift doesn't guarantee that that's where the price will be right
so even if you can buy this thing cheaper (in drift) than your estimate of mu, is it a good buy?
you might make money, you might not
now, what's a sure-fire way to lock in money today (or what investment strategy cannot lose money in this simplified world with constant short rate etc)?
So we're only thinking about forward
think it through, but this is why the no arbitrage condition has r in it, not mu and is stronger right
yes
so lets say the spot is S, maturity is T, short rate is r
where should the zero cost strike be
i.e. the forward price of the structure
F = S exp(rT) should be the price of the forward
sell the loaned asset, then loan the money out at rfr / use it to purchase forwards
And thats locked in an arb
right
ive ordered that awfully but yeah
good practice to go through each part of the thing systematically, like you buy the fwd contract with strike K, then what do you do with underlying and bank acct at t=0 and how do you deliver the contract at T
but yes
now, that's a guaranteed profit
I understand the same situation occurs for options. Your delta hedging strategy replicates exactly the same portfolio as an option
playing with mu is not guaranteed, even if you knew mu
But uhhh yeah, im trying to see this still I suppose
with my the play is law of large numbers, ie you make the same trade at many different time points and hope it averages out into profit
this arb pricing there's no such uncertainty, you make the profit
I guess half the problem is figuring out the cost of continuous hedging makes no sense without doing the integrals
So in terms of a basic intuition I really do need to stick with a discrete model
the basic intuition was in suremark's screenshot. you choose your strategy (i.e. delta) so that there is no stochastic component to your PnL
Right I do recall this cancellation
this way you'll end up with a PDE that has a probabilistic interpretation
(that being the black-scholes PDE)
and there's your risk neutral distribution, then
👍 thanks ill have another go
Thank you, Hairy Ball
“Thank you Wizard”
bairy hall
exactly
egg
egg
geg
gge
love the vibe

gregg
gergg
gegrg
Talking with engineers just makes my head hurt
"I'm working on insert deep math concepts
"Yeah I got that but what are the applications for that?"
yo
Same
egg
Hey applications are fun


logloglogloglogloglog
if they only knew the power of the dark side
the black monkey looks cute
☠️ -
oh I like this one
That’s the last one I have


1st day of college tmrw 
who are you and what have you done with @flint basin
?
Hmm so apparently real estate flippers are kinda the worst
And you shouldn't buy a property that's been flipped
we were brothers but no longer
I am now 🥚
Like this just isn't livable
…..
I can just imagine the groan
Chuckle
I'm giving advice smh
average discussy moment
@fickle skiff Not sure if you got muted for longer, but I hope it's just shortly
They got banned
☠️
k, bc at least the reaction was rather induced by someone else
Orangutans are great apes
They are also Great Apes
I wonder what life is like through the eyes of an Orangutan
All of the Great Apes are so clearly highly intelligent
me having a stroke on should I say wraithlord or just yotsuba
yotsuba

Harambe is an example
Yes
No further comment your honor
I believe we could teach the other great apes our ways
My teacher does not seem okay
what damned book is that?
They actually linked to the wrong book in the syllabus
texas does have an interesting history, but are there really people in prison all around the world for espousing ideas about texas history? 😯
coincidentally i have a youtube video about the mexican-american war playing in the background
Hello y'all
How to do you guys overcome the fear of doing math homeworks and start enjoying doing math? What benefits does it have when you do them?
I hope this is the right place to ask
strangely I was never afraid of maths, least math homework
but I can say one would overcome that fear once they realised they could do it
the more homework you do the less you care about it
I mean, we only fear what we don't know
What benefits does it have when you do them?
it gets easier
This is why you should become a hobbyist house flipper, so that you can buy flipped properties and re-flip them yourself 
Man I missed sotrue
i didn't
Anyone knows whether Russia rubel will get appreciated soon?
Or it would just go down...
Forever
There are people in prison for less
I dont know how true it is that people are in prison for talking about Texas now
Grr of course the morning I want to sleep in they are doing construction literally in front of my house
Tell them to instead prove it by contradiction
They reject classical logic in favor of constructivism 
why are there two ryx eggs!!?
we have multiplied 🧑🤝🧑
it's cracking
f i neither studied enough linalg nor did i study enough topology today 
What's inside?
We do not know yet
F
Is it a reference to the egg story
What I know is that, that thing's ending up in a frying pan
What egg story
Humpy Dumpy?
How to remember this
determinants go brrr
Start from the properties on the basis vectors
Use linearity and anticommutativity to simplify
This is very ugly
but it works
$x \times y = - y \times x$
$ax \times by = a(x \times by) = ab (x \times y)$
And much easier to remember imo, when doing calculations at least
wraithlord_kohonorable
Those come obviously from thinking of the cross product as the wedge product
Imagine the vectors form a parallelogram
I agree tho
(it's calculations, ofc it's ugly)
If you swap the order of the vectors, the parallelogram changes directions
If you take the special case of a square
The bilinearity is obvious
Using these two basic properties, take (ax +by + cz) × (ux + vy + wz)
Or no
a_i and b_i
To get the right labeling
A projection of a tesseract (hypercube) as it rotates in 4 dimensions

$\det(A)=\br{\Lambda^{\mathrm{top}}A^{\mathrm{top}}}^{\wedge\top}$
Daybroken🥭
$\underline A(\mathbf{I})=\det(A) \mathbf{I}$
wraithlord_kohonorable
$\det(A) = \frac{\underline A(\mathbf{I})}{\mathbf{I}}$
wraithlord_kohonorable
I have the best definition
Based
I have made quite a large assumption
No I didn't, that's definition, we're good
I have come 🐣
first countable means every point has a countable nbhd base
second countable means topology has a countable base
yes
Is there a third countable
no


of third kind 
Why take AP Stats
Cuz
Take Calc BC instead
…
i took it in 11th grade, it was probably my second easiest AP class out of all my APs but also im a mathematician now so
AP Stats are just for boosting average AP score
it's a fine class
I mean what if, u hate word problems
i think someone who really didn't like math at all would still have some trouble
well, the whole class is word problems
…
but still, every problem is like a paragraph of reading and then figuring out what the heck to do with the numbers in it 
Oh…
Well I’ll most likely take it in 11th, if I pass algebra 1 without problems and take geometry for 1 month in summer and pass it’s test
We’ll see
Cause it’s like at least I know the teacher that teaches it, and it’s a really good teacher
That’s another pro for me
Can u take pre calculus and Ap stats the same time?
Both
Don’t u need to take pre calculus to take it too?
That should be fine
I don't think so necessarily
aaaaah my forearm hurts
to even type it hurts 
oof
not developed yet, little chick

about what?
What I should talk about
Wait, talk about for what?
I pretty much knew everything I've read besides how to calculate tension
If they knew what they were clueless about that'd be a clue
Oh, like what to go over during your tutoring session?
Yeah


In 1896 in Waco, Texas, William Crush parked two locomotives at opposite ends of a 6.4-km-long track, fired
them up, tied their throttles open, and then allowed them
to crash head-on at full speed (Fig. 7.1.1) in front of 30,000
spectators. Hundreds of people were hurt by flying debris;
several were killed
In the past, people were so smart!
Genius
Will Crush
Fire town
Why have a tutor
fast forward 120 years and people are doing the tide pod challenge
Very good learning
I want a tutor
You obv learn by yourself
Bruh why do they require us to take algebra 2 for AP stats
So annoying
Algebra 2 is already a pain
Ur lucky ur in hs
You have a lot of opportunity rn
I dint think so
Oh
Im not in hs
Did u graduate
Yeah im working
When I was your age it was a hassle
Is it harder then algebra 1
Jk it wasnt i just wanted to say when i was your age
Like how much difference
not much
If you are a low confidence math student dont worry this server will back you up
If you are high confidence then no worries either
Just make sure to ask when you get stuck with things
Dont let misunderstandings pile up
(Bros dreaming of Ap stats but still in algebra 1 cause failed in 8th due to not caring)
I understand
I had opportunity to take algebra 2 this year
I was the same with my liberal arts classes with not caring
Oh
Like english and social studies
Oh
I got back on track when i was in like 10th grade
Well math is different
Not really
I could literally
Take like 8 college courses
For math
If I had taken algebra 2 this year
Well
I do have a chance to take geometry over summer
That’s my last chance
Yes they do
You can study and take the test if you know the content
If your school doesnt let you take the test you can register anywhere else and they are happy to take the money
The only pre…….. for Ap stats is algebra 2 and algebra 1 and geometry
Idk why but it says eligible grade: 12th
Maybe im wrong or things have changed
But can I take it in 11th?
Try asking
If it says eligible grades 12th
I was able to ask to skip pre calc and it worked
WOW
I’ll try that
Cause google say I might need to take pre calculus
To take Ap stats
Why do you want to take AP stats so badly?
It’s
Ez
No need to worry about
8483&4&4&48;&:@:$202
Calculus harder
WHAT
I remember having to memorize how to write out hypothesis test prompts
And its pretty much remembering 3 sets of 6-8 sentences depending on the contezt
And then there are still other questions to do
calculus is quite easy
…
So it’s pretty much
what's the integral of sec x
easy
let me see
$$ \int \sec(x) dx $$
$$ \int \frac{1}{cos(x)} dx$$
Multiply top and bottom by cos(x):
$$\int \frac{cos(x)}{1-sin^2(x)} dx $$
$$ u = \sin(x)$$
$$ - \int \frac{1}{1-u^2} dx$$
$$ - \tanh(u) + C$$
$$ - tanh(sin(x)) + C$$





A

