#serious-discussion

1 messages · Page 97 of 1

jagged forge
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do you know how to multiply matrices?

fathom tendon
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no

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all weve done so far basically is state that an augmented matrix is another way of writing a system of equations

jagged forge
#

sorry, maybe that’s thr wrong question. did they teach you how to apply a matrix to a vector

neat lintel
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It's just a matter of representation at this point

fathom tendon
#

yeah thats not the thing im trying to prove tho

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im trying to prove an equality thingy

fringe summit
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$\begin{bmatrix} x_1^2&x_1&1\x_2^2&x_2&1\x_3^2&x_3&1\end{bmatrix} \begin{bmatrix} a\b\c\end{bmatrix} = \begin{bmatrix}y_1\y_2\y_3\end{bmatrix}$

fathom swallowBOT
#

Dragonslayer Sharp

jagged forge
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if you apply the matrix to the vector, it is pretty straightforward to see

neat lintel
#

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

jagged forge
#

u just gotta calculate and expand it out

neat lintel
#

this is just another way of writing that

fathom tendon
#

oh

neat lintel
#

I don't see anything to prove here

fathom tendon
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idk

neat lintel
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you said that given a system of linear equations, you can write it as an augmented matrix

fathom tendon
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Its what my textbook is asking me to do

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yeah which i did

neat lintel
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what do you wanna do next

fathom tendon
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so like on my first row I have x_1^2 + x_1 + 1 = ax_1^2 + bx_1 + c

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And I want to show that x_1 is equal to say a

fathom tendon
fringe summit
#

Are you sure that’s what you want

fathom tendon
#

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

neat lintel
#

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

fathom tendon
#

My teacher and my textbook have no seperation between colums 3 and 4, is that just notational?

neat lintel
fathom tendon
#

oh

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why not

neat lintel
#

the first row represents
ax_1^2 + bx_1 + c = y_1

neat lintel
fathom tendon
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so i was subbing that in for y on the righr side of the matrix

neat lintel
#

this equation literally represents the first row of the augmented matrix

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they tell you the same thing

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no info is lost or gained

fathom tendon
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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

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so now the coeffecientless line ceases to exist?

neat lintel
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the coefficients are encoded in the columns

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first column represents a

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second b and third c

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4th just represents the right hand side of the equations

fathom tendon
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Wait why do the columns represnt the letters

neat lintel
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for now it's a matter of definition

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you can't prove anything

fathom tendon
#

I guess I just missed that in class today somehow

neat lintel
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there are 3 representions: systems of equations, vector equation and augmented matrix

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And they are just different ways of representing the same thing as far as intro to linear algebra goes

fathom tendon
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ok

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Well I need to go and try to rush through the rest of my HW lol

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Ill see what I can throw together tomorrow knowing that the columns represent each coefficient

neat lintel
native sorrel
#

What do we use the equation E=mc(squared) for?

neat lintel
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nukes

native sorrel
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XD

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wow

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But for the mass part of the equation, where do we get the mass from

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do we apply that equation to objects to find their potential energy?

neat lintel
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it's not their potential energy

native sorrel
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Is the equation just a statement?

mental stratus
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black name

zealous garden
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He got cohonorable

echo tundra
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Looking at history, looks like he made some poor joke and got muted for 2 days by Eric

long matrix
#

cohonorable.

glossy crescent
#

I want a rank too 😦

vale trench
#

yeah, give my man the black role

glossy crescent
#

I want roles with bright color

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How do I apply for Mod

vale trench
#

need to perform a ritual

glossy crescent
#

I will do anything

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To achieve rank

vale trench
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sacrifice all your belongings, and devote yourself to this server

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that is the first step

glossy crescent
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I've done that already

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I even quit my job to apply

vale trench
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the next steps are known only to the current holders of the title

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ordinary humans get purged if they know the truth

glossy crescent
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How does one apply for staff

echo tundra
glossy crescent
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lmao

echo tundra
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don't ping mods unnecessarily unless you wanna get muted

glossy crescent
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wdym It's a general question

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An "inquiry"

echo tundra
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for general questions use modmail

vale trench
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they are not here for answering general questions

glossy crescent
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Oh?

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Sorry for the ping

surreal sapphire
glossy crescent
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Figured, such a large server to be looking for staff

mental stratus
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are we

indigo oriole
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what is 88+22

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i dont wanna use a calculator

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but im too dumb

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jk

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im bored

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hi

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uwuw

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haja

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heje

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hehehe

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kkakakak

surreal sapphire
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come back tomorrow, this isnt your personal circus

woven whale
mental stratus
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you don't

alpine comet
latent remnant
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is that really true? 5000?

dense belfry
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There are 300 million people in the us though

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idk if 5000 is really that many considering that

sly flint
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Well, 5000 janitors with a phd.

latent remnant
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how many janitors are there total tho

dense belfry
sly flint
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It doesn't really help the fact though.

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Lol.

dense belfry
sly flint
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Imagine studying for 7+ years only to become a janitor.

dense belfry
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I feel like 5000 isn't that big a number though

sly flint
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It's just the fact they have phds is concerning. By magnitude it's small.

neat lintel
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was posted in 2010

dense belfry
proven plinth
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damn

dense belfry
sly flint
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damn

dense belfry
proven plinth
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that name

sly flint
dense belfry
dense belfry
sly flint
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Janitors in the US earn around ~$30000 annually, apparently.

sly flint
dense belfry
#

Most of them do but some make more

sly flint
neat lintel
dense belfry
#

Aight time for my orientation for my course I'm teaching

sly flint
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Awesome. See ya!

pearl moth
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one of the cooks I used to work with at pizza hut had a PhD

long matrix
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we have phd janitors right here.

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moderators cleaning up after you lot hehe

wet mortar
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tfw you lot

long matrix
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yeah you lot, nuffin to do with me

smoky lodge
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is "a living thing is a thing made out of living things" a good recursive definition?
could it be disproved?

surreal sapphire
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its not a statement in the mathematical sense, so its "not even wrong"

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i.e. cant be proven or disproven

smoky lodge
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oh I see

unborn ferry
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Because at the beginning of the FIRST LIFE FORM

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it was made of nonliving things

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And yes I do mean cyanobacteria

smoky lodge
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could it possibly be infinite?

unborn ferry
smoky lodge
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could there be no first?

unborn ferry
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There has to be or atleast a few

smoky lodge
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I am weak at math so maybe it isnt posibble

unborn ferry
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Idk how even the first life form came to be

smoky lodge
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like the real numbers

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there is not a first

unborn ferry
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My theory was that elements were bumping into each other by solar energy and eventually and accidentally created cyanobacteria with dna

unborn ferry
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There is either what I just said above

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Or aliens was like “hey this looks habitable lets pop in some bacteria so they can evolve”

storm sage
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It gives no info as to whether something is a living thing or not

smoky lodge
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its a value which is true or false

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do I have to give a way to find how why its that way?

storm sage
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It's not even true or false

fringe summit
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Or a way which gives a starting part

storm sage
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Like

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Does a human being satisfy this definition?

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I literally have no idea lol

fringe summit
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(It’s not recursive since there’s no base case, for one)

smoky lodge
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oh yea

fringe summit
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Also “made of”

raven plaza
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e.g. nothing is a living thing doesn't contradict this definition

fringe summit
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Are lungs living on their own?

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What about salads?

smoky lodge
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I wanted to get to that actually

smoky lodge
raven plaza
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We are all electric signals in the matrix

smoky lodge
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my defenation is bad

smoky lodge
solid yarrow
raven plaza
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Splits into two people

solid yarrow
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Splits the timeline

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He's now in a superposition

unborn ferry
mental stratus
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aight im pretty much all healed up by now

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time to do math

neat lintel
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Why can't someone who speaks english writes these questions

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the veolocity vector $$\vec{v}$$. At t = 4.00 s,

fathom swallowBOT
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One person

neat lintel
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but naw

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it's actually

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two sentences before

burnt ledge
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this is written clearly and simply

neat lintel
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at t = 0

burnt ledge
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Do you know what a full stop / period means. Its basic english punctuation

neat lintel
#

😞

burnt ledge
#

It means the end of a sentence

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Youre only allowed to complain about the lack of paragraphing here and even that is kind of justified

fringe summit
neat lintel
flint basin
storm sage
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I agree, it's clearly written, and there's no fault here on the author of the question. Reading can be hard sometimes though.

fringe summit
#

$20 moment

neat lintel
#

FYI I was born in the USA 😁

neat lintel
neat lintel
#

Even Chinese people still need to learn a lot of characters they don’t know

neat lintel
neat lintel
neat lintel
neat lintel
#

But it’s true tho. Be completely literate in Chinese is hard

tame egret
neat lintel
tame egret
tame egret
neat lintel
tame egret
neat lintel
# tame egret LOL

I’m gonna be carrying a kitchen knife. Those Brit are gonna be scared

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Extra sharp too

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Gordon Ramsey knife I got that

tame egret
neat lintel
neat lintel
tame egret
tame egret
neat lintel
storm sage
#

that's so hype

neat lintel
storm sage
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Oh lol

neat lintel
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Hiya

neat lintel
neat lintel
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today is last day

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oh

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7 minutes

warped cliff
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Wow

solid yarrow
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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?

neat lintel
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It talks aboout extra credit but doesn't mention any studies

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just

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"They said this"

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and "this person also said this"

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really low quality textbook.
Ohhh, It's written by first year college students. that mus be why

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storm sage
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I thought that book was generally really good

solid yarrow
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Well, it may be for a combination with lectures.

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Not for self-study.

storm sage
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I think it is reasonably good for self study

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I like that book a lot

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But Linear Algebra Done Right is also a good linear algebra book

solid yarrow
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You mean Axler?

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Hm, heard he likes to skip determinants.

storm sage
storm sage
solid yarrow
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Might give it a shot then

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Another reason I might struggle with the book might be, that I struggle with self-learning. Who knows?

storm sage
drowsy ridge
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someone trying to help me with 11th grade math pls

storm sage
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If they're struggling with LADW though, I can't imagine they'd appreciate hoffman kunze

sleek pagoda
#

How do you prove that f(-infinty)=0 and F(-infinity)=0, if f(x) and F(x) are a pdf and cdf respectivly

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or is this not true?

storm sage
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In which case

sleek pagoda
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yes

storm sage
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Let's say it's not zero, then what does it look like?

sleek pagoda
#

the area would be >1

storm sage
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yeah it would have infinite area

sleek pagoda
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IDk how to write that more formally

storm sage
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Do you know about epsilons and deltas?

sleek pagoda
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a little bit

neat lintel
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How do i get better at writing math

flint basin
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practice

sleek pagoda
neat lintel
#

$$\int u'v = uv - \int uv'$$

fathom swallowBOT
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One person

neat lintel
#

I know latex :(

lean coyote
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I'm a current cs undergrad

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I'm dodging more towards data analysis than web development

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What should I do ?

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How should I decide

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To skill on ?

loud snow
quick beacon
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There are big data frameworks you can look into, such as Hadoop, though I'm not sure what exactly is hip these days

jagged forge
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arrow datafusion is hip :]

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that’s not a serious recommendation btw

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arrow by itself is pretty hip though

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datafusion is a WIP

lean coyote
#

I think more ppl are heading towards web development or front end, ryt ? Best to go on data analysis ?

jagged forge
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backend development jobs are plentiful, I’m not sure where you got that idea

lean coyote
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I mean all the current students are heading that way

jagged forge
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everyone needs engineers to manage their stuff that’s been deployed to the cloud

lean coyote
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Cs

loud snow
lean coyote
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My bad then

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Not money, only experience

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I didn't mention money

loud snow
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You are mentioning popularity

lean coyote
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I mean don't go towards a bigger crowd

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Ryt?

loud snow
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Why not?

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Personally I like statistics

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So I wouldn’t mind doing data analysis jobs

lean coyote
#

Have u graduated

loud snow
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Yea

lean coyote
#

That's coool

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Oh are u doing a full time job

loud snow
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Yea

lean coyote
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I wanted to learn freelancing but how can I study skills and my subjects and sleep

final igloo
#

Put ohone on airplane mode

split pawn
#

I'm actually gonna take a break now

sly flint
#

I saw yours and tried to replicate it.

split pawn
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Mhm

sly flint
#

Oh.

sly flint
glossy crescent
#

What's a good TPU for mathematical calculations?

storm sage
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what's a TPU?

glossy crescent
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Tensor Processing Unit

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For AI machine/deep learning

alpine kindle
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that's a thing?

glossy crescent
#

Apparently according to Google

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The renowned Chat-GPT operates from H100 TPU

modest moon
glossy crescent
#

and Physics

pastel axle
#

yeah

glossy crescent
#

But why think about it pessimistically

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Technology are capable of ameliorating

proven plinth
#

Yea, it's not made for math

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such a lousy argument against it

tame egret
split pawn
magic heron
#

BOO!

tame egret
magic heron
#

Who even knows tbh

#

why you looking at my bio? ☠️

abstract forge
#

This server is awesome btw

ripe dirge
#

Yes

sonic sentinel
#

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

loud snow
#

CME sells whether derivatives

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The downside is that they are very expensive

spark lance
echo tundra
#

for general purpose maths calculations you need a CPU

loud snow
neat lintel
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Can't you vectorize most math

loud snow
#

Is it same as gpu?

echo tundra
#

I guess you can, I am not very sure actually

loud snow
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Lol

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Tpu is buzzwordy

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Also no way of knowing much about them

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They are proprietary

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Actually they wrote blog posts about them

jagged forge
loud snow
echo tundra
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basically yeah

loud snow
#

And they have a unit for activation functions

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Idk exactly how it works im still reading

jagged forge
# loud snow Can you explain more?

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

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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

loud snow
#

Sbe says its an encoding algorithm

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/protocol

jagged forge
#

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

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yeah they stream their live data encoded as SBE

loud snow
#

How much does it cost?

loud snow
jagged forge
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Idk the pricing details, someone at my company worked it out I guess

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I didn’t buy it myself

loud snow
#

Thas cool

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I havent done any programming related to streaming

jagged forge
#

the data is valuable but handling it was such a pain

loud snow
#

I want to work with streamed data );

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Idk how to start either

jagged forge
#

maybe look for a data provider with a websocket endpoint

loud snow
#

Is this found on kaggle

jagged forge
#

Idk what kaggle is

loud snow
#

Website for stuff relating to handling data

jagged forge
#

maybe they have some material on websockets

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websockets are high level so you don’t have to deal with sockets and IP packets and stuff

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and usually websocket servers transmit json (though they can technically transmit anything)

loud snow
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Im confused

loud snow
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But then ig my goal becomes more complicated

jagged forge
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yeah if you just want to handle data in real time you don’t need to deal with networking at that level

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but it is fun if you need efficiency

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then you can explore different settings and different ways to use the Linux networking stack

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CME and other data feeds use UDP because they can transmit it via multicast, which is more efficient when transmitting one-to-many

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also because of the ultra low latency requirements I guess

jagged forge
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you can have efficiency without garbage like SBE

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none of the other SIPs do what they do

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they only use SBE because they have like a bazillion different feeds and they wanted a generalized approach

sonic sentinel
#

chatgpt explains it as "its basically insurance against bad weather"

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maybe chatgpt is wrong maybe not, but the core of my idea was buying information from anyone who can produce it

mint canopy
sonic sentinel
#

what did you google

mint canopy
#

The words "what is a weather derivative." Hope that helps in the future.

sonic sentinel
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oh right i saw the investopedia article for weather derivative

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but like

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it opened

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"A weather derivative is a financial instrument used by companies or individuals to hedge against the risk of weather-related losses."

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i already don't understand what that means

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so i ignored the rest of the page

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(because its presumably going to expand upon that idea)

jagged forge
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do you understand what derivative instruments are? eg options and futures

sonic sentinel
#

i am SIXTEEN fucking years old

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😭

wet mortar
#

answer the question

jagged forge
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options and futures are not hard to understand

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at least not the basic idea

sonic sentinel
jagged forge
#

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

sonic sentinel
#

ok forward contract

jagged forge
#

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

sonic sentinel
#

so you don't exactly know what future is but you're saying it is similar?

jagged forge
#

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)

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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

sonic sentinel
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oh OK

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why is this information important

jagged forge
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also futures are standardized and traded on exchanges unlike forward contracts

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well, the main idea is hedging, which is what the farmer is doing

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he is hedging the risk of adverse market conditions for his crops

sonic sentinel
#

hedging is what what what now

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from conext i pick up that hedging is just any sort of contract to try and make revenue(right word?) more stable?

jagged forge
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no, hedging is more like you offset the risk from one asset by purchasing another asset that moves in the opposite direction

sonic sentinel
#

moves?

jagged forge
#

sorry, I meant the price moves in the opposite direction

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so if one asset falls, the other rises and your portfolio doesn’t get hurt as much

sonic sentinel
jagged forge
#

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

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so if his crops are harmed by weather, the weather asset makes back the money he lost from bad weather

sonic sentinel
#

ok "A weather derivative is a financial instrument used by companies or individuals to hedge against the risk of weather-related losses."

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financial instrument

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what is that

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sounds abstract

jagged forge
#

just a fancy word for thing that is bought or sold by people in financial markets

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it is a very broad term

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it includes stocks, bonds, index funds, all kinds of derivative instruments (options, futures, etc) and a bunch more

sonic sentinel
#

does this relate to the "derivatives (finance)" that i looked up on wikipedia

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or are they just named the same thing

jagged forge
#

yes that’s exactly what we’re talking about

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derivative in finance just means some asset whose value is derived from the value of another asset in some way

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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)

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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

sonic sentinel
#

ok I don't understand how weather derivatives are related to derivatives

jagged forge
#

well, which part is confusing you?

sonic sentinel
#

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?

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OH cause the price of the weather-related asset is derived from the asset you own

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not price

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value

jagged forge
#

well you might not even own the underlying asset, but yeah more or less

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and price = value, or at least price = someone’s opinion of the value

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(plus some markup I guess)

alpine comet
#

It's an instrument built upon another

sonic sentinel
#

also this makes the word "derivative" always applicable (i.e. useless) to a financial instrument until you start talking about a particular context, right?

jagged forge
#

how would it be always applicable?

sonic sentinel
#

"derivative in finance just means some asset whose value is derived from the value of another asset in some way"

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surely you see assets' values not being independent like alll.. the.. time????

jagged forge
#

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

prime adder
#

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

long matrix
#

hello quants

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does anyone 'get' risk-neutral probabilities sotrue

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im failing to pick up intuition soynoo

jagged forge
#

I implemented binomial options pricing model and I don’t get it either opencry

alpine comet
#

I have a theory that the majority of quants don't get what they do, but do nonetheless

jagged forge
#

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

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but idk how that generalizes to models besides the simple black scholes pricing formulas or the binomial options pricing model

long matrix
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sigh.

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i dont understand why i cant find a bloody intuitive explanation online

jagged forge
#

what is the homework problem you’re stuck on

long matrix
#

what.

flint basin
#

what

jagged forge
#

I assumed u were doing this for homework or something. nvm

long matrix
#

my homework is to make a few bucks

loud snow
#

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

loud snow
loud snow
#

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

stuck hollow
#

round 20994 to three significant figure

fringe summit
quasi jettyBOT
mental stratus
#

love

next blade
#

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

lilac steppe
#

ah yes the Albanian group

#

the strongest algebraic structure

teal tree
#

it's quite far from the "strongest algebraic structure"

long matrix
#

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

lilac steppe
glossy crescent
#

Wha..

mental stratus
#

switzerland

jagged forge
long matrix
#

ngl this no arb assumption is pretty sketch in practice isnt it

#

fees whatever

#

and other stuff

jagged forge
#

yeah actually you routinely see option prices that are impossible

long matrix
jagged forge
#

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

long matrix
#

well no, thats alright

#

they act as price bounds

jagged forge
#

well if they’re price bounds the market doesn’t follow them lol

long matrix
#

I think the price wants to be higher in general due to collat requirements

#

usually

wet mortar
#

fuark

#

shuri tryna secure the bag?

jagged forge
long matrix
#

well the seller has to put down collat unless its some centralized thingy

jagged forge
#

I think there are some formulas to calculate the additional fee based on the risk they have to carry

long matrix
#

and well id hope the centralized thingy would put aside collat regardless

long matrix
#

Naively, I feel like the 'fair value' options in practice should generally be overpriced due to collat

jagged forge
#

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

long matrix
#

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

jagged forge
#

hmmCat I’m not that good at thinking like a trader, I mostly just shovel data around and do some basic calculations

long matrix
#

oh nvm it dont

#

me neither catshrug

#

I really wanna get a handle on bs and then see what other reasonable models u can come up with

#

weakening assumptions or whatever

mental stratus
#

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)

echo tundra
#

just download the desired package version and install it locally

next blade
# long matrix I guess trying to convince myself the time continuous delta-hedge portfolio for ...

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

long matrix
#

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

next blade
#

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

jagged forge
#

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

next blade
jagged forge
#

bergomi was too hard opencry

#

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

next blade
#

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

long matrix
#

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

long matrix
next blade
#

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)

long matrix
#

Yeah

#

Im still thinking about this purely theoretically in my attempts to understand - assume the perfect model

next blade
#

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)

long matrix
#

But this model 'works' if the forward rate is 0

#

forward = spot

next blade
#

well the relevant part is where you have a drift term roght

#

you estimate a drift of mu

long matrix
#

Alright.

next blade
#

same as you estimated a probability of A winning earlier to be 60% or whatever it was

long matrix
#

yes.

next blade
#

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)?

long matrix
#

So we're only thinking about forward

next blade
#

think it through, but this is why the no arbitrage condition has r in it, not mu and is stronger right

#

yes

long matrix
#

So buy the cheap forward

#

and then uh

#

loan & sell 1 asset per contract i think...

next blade
#

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

long matrix
#

F = S exp(rT) should be the price of the forward

long matrix
#

And thats locked in an arb

next blade
#

right

long matrix
#

ive ordered that awfully but yeah

next blade
#

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

long matrix
#

I understand the same situation occurs for options. Your delta hedging strategy replicates exactly the same portfolio as an option

next blade
#

playing with mu is not guaranteed, even if you knew mu

long matrix
next blade
#

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

long matrix
#

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

next blade
#

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

long matrix
#

Right I do recall this cancellation

next blade
#

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

long matrix
#

👍 thanks ill have another go

flint basin
#

Thank you, Hairy Ball

fringe summit
mental stratus
#

bairy hall

proven plinth
#

uwucat exactly

mental stratus
#

egg

flint basin
#

egg

solid yarrow
#

geg

jagged forge
#

gge

solid yarrow
#

love the vibe

proven plinth
vast surge
#

gregg

solid yarrow
#

gergg

wild lantern
#

gegrg

latent edge
#

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?"

neat lintel
#

yo

neat lintel
#

bored

latent edge
#

Same

flint basin
#

egg

ocean harbor
neat lintel
#

Such wise words

latent edge
neat lintel
jovial ember
#

log

#

Hey look at these monkeys

#

Cool guys

#

Not monkeys actually

#

Apes

jagged forge
ocean harbor
jovial ember
ocean harbor
#

☠️ -

jovial ember
#

Me

ocean harbor
#

oh I like this one

jovial ember
#

That’s the last one I have

ocean harbor
jovial ember
wooden flax
#

1st day of college tmrw shiver

jagged forge
wooden flax
#

?

velvet dagger
#

Hmm so apparently real estate flippers are kinda the worst

#

And you shouldn't buy a property that's been flipped

flint basin
#

I am now 🥚

velvet dagger
#

Like this just isn't livable

jagged forge
#

…..

velvet dagger
#

I can just imagine the groan

lavish kayak
#

Chuckle

storm sage
velvet dagger
#

I'm giving advice smh

jagged forge
#

speaking of audible groaning

#

don’t go to main discussion rn

flint basin
#

average discussy moment

quick bramble
#

@fickle skiff Not sure if you got muted for longer, but I hope it's just shortly

ocean harbor
quick bramble
zealous garden
#

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

neat lintel
#

Monkey

#

🙈

latent edge
#

me having a stroke on should I say wraithlord or just yotsuba

flint basin
#

yotsuba

loud snow
#

Harambe is an example

zealous garden
#

Yes

#

No further comment your honor

#

I believe we could teach the other great apes our ways

neat lintel
#

My teacher does not seem okay

peak tide
#

what damned book is that?

neat lintel
#

They actually linked to the wrong book in the syllabus

peak tide
#

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

mental stratus
#

aaahhhhh topologyyyy

#

aaahhhhh linear algberaaaaa

glossy crescent
#

Cheer up mate

#

I have linear algebra next semester too :/

mint oasis
#

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

alpine comet
#

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

river moon
#

the more homework you do the less you care about itsotrue

alpine comet
#

I mean, we only fear what we don't know

#

What benefits does it have when you do them?
it gets easier

errant ridge
#

Man I missed sotrue

mental stratus
#

i didn't

neat lintel
#

Anyone knows whether Russia rubel will get appreciated soon?

#

Or it would just go down...

#

Forever

loud snow
#

I dont know how true it is that people are in prison for talking about Texas now

flint basin
#

Grr of course the morning I want to sleep in they are doing construction literally in front of my house

burnt ledge
flint basin
burnt ledge
#

why are there two ryx eggs!!?

flint basin
#

we have multiplied 🧑‍🤝‍🧑

mental stratus
#

your eggs just changed colors

flint basin
wet mortar
#

it's cracking

mental stratus
#

f i neither studied enough linalg nor did i study enough topology today blobcry

glossy crescent
flint basin
#

We do not know yet

echo tundra
glossy crescent
flint basin
glossy crescent
#

Humpy Dumpy?

neat lintel
#

How to remember this

flint basin
#

determinants go brrr

zealous garden
#

Eww

#

I'm gonna vomit

zealous garden
#

Use linearity and anticommutativity to simplify

latent edge
#

lol

latent edge
flint basin
#

but it works

zealous garden
#

$x \times y = - y \times x$

$ax \times by = a(x \times by) = ab (x \times y)$

flint basin
#

And much easier to remember imo, when doing calculations at least

fathom swallowBOT
#

wraithlord_kohonorable

zealous garden
#

Those come obviously from thinking of the cross product as the wedge product

#

Imagine the vectors form a parallelogram

flint basin
#

(it's calculations, ofc it's ugly)

zealous garden
#

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

faint meteor
#

i love not knowing what this is

zealous garden
#

A projection of a tesseract (hypercube) as it rotates in 4 dimensions

long matrix
flint basin
wet mortar
#

$\det(A)=\br{\Lambda^{\mathrm{top}}A^{\mathrm{top}}}^{\wedge\top}$

fathom swallowBOT
#

Daybroken🥭

zealous garden
#

$\underline A(\mathbf{I})=\det(A) \mathbf{I}$

fathom swallowBOT
#

wraithlord_kohonorable

zealous garden
#

$\det(A) = \frac{\underline A(\mathbf{I})}{\mathbf{I}}$

fathom swallowBOT
#

wraithlord_kohonorable

zealous garden
#

I have the best definition

long matrix
#

det(A) = eeveeKawaii A

#

no me.

zealous garden
#

Based

zealous garden
#

No I didn't, that's definition, we're good

mental stratus
#

ryxi's egg hatched?

#

ok tomorrow def gonna finish this chapter

flint basin
mental stratus
#

pervert

flint basin
#

🙃 happy

mental stratus
#

first countable means every point has a countable nbhd base

#

second countable means topology has a countable base

wet mortar
#

yes

burnt ledge
#

Is there a third countable

wet mortar
#

no

long matrix
glossy crescent
rocky shuttle
#

of third kind catGiggle

neat lintel
#

How hard really Ap stats is

#

Rate it out of 10

#

-/10 basically

deep mango
#

it was like a 4

#

well

#

5

neat lintel
#

I mean I’d it hard for a

#

11th grader to take

#

?

glossy crescent
#

Why take AP Stats

neat lintel
#

Cuz

glossy crescent
#

Take Calc BC instead

neat lintel
#

deep mango
#

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

neat lintel
#

POV Ap calculus

#

I hate the fact I can’t send gifs

glossy crescent
#

AP Stats are just for boosting average AP score

neat lintel
#

Yeah that’s what I want

#

If it is easy I’m gonna try to take it in 11th

deep mango
#

it's a fine class

neat lintel
#

I mean what if, u hate word problems

deep mango
#

i think someone who really didn't like math at all would still have some trouble

#

well, the whole class is word problems

neat lintel
#

deep mango
#

but they're like

#

well written

#

and not ambiguous

neat lintel
#

Ohh

#

Aight

#

So u just need to know English

#

?

deep mango
#

but still, every problem is like a paragraph of reading and then figuring out what the heck to do with the numbers in it opencry

neat lintel
#

I don’t like hate math but don’t love with

#

Math

deep mango
#

so if you do not like that

#

it's not a fun class

neat lintel
#

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?

deep mango
deep mango
flint basin
#

aaaaah my forearm hurts sadcat to even type it hurts sadcat

solar hawk
#

not developed yet, little chick

flint basin
neat lintel
#

:)

#

Me and my tutor are clueless

storm sage
neat lintel
storm sage
#

Wait, talk about for what?

neat lintel
#

I pretty much knew everything I've read besides how to calculate tension

velvet dagger
#

If they knew what they were clueless about that'd be a clue

storm sage
#

Oh, like what to go over during your tutoring session?

neat lintel
#

Yeah

storm sage
#

Oh gotcha

#

I guess that's a good thing lol

flint basin
neat lintel
#

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!

fringe summit
#

As the prophecy foretold

#

Waco has had multiple standoff tragedies catThin4K

little vine
#

Fire town

peak tide
loud snow
#

I want a tutor

#

You obv learn by yourself

neat lintel
#

Bruh why do they require us to take algebra 2 for AP stats

#

So annoying

#

Algebra 2 is already a pain

loud snow
#

Ur lucky ur in hs

neat lintel
#

?

#

Wdym

loud snow
#

You have a lot of opportunity rn

neat lintel
#

Wha

#

Do u not have Ap?

loud snow
#

I dint think so

neat lintel
#

Oh

loud snow
#

Im not in hs

neat lintel
#

Did u graduate

loud snow
#

Yeah im working

neat lintel
#

Wow

#

Is algebra 2 hard

#

Is it more harder than algebra 1

loud snow
#

When I was your age it was a hassle

neat lintel
#

Is it harder then algebra 1

loud snow
#

Jk it wasnt i just wanted to say when i was your age

neat lintel
#

Like how much difference

flint basin
#

not much

loud snow
#

If you are a low confidence math student dont worry this server will back you up

neat lintel
#

Ok

#

Ty

loud snow
#

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

neat lintel
#

(Bros dreaming of Ap stats but still in algebra 1 cause failed in 8th due to not caring)

loud snow
#

I understand

neat lintel
#

I had opportunity to take algebra 2 this year

loud snow
#

I was the same with my liberal arts classes with not caring

neat lintel
#

Oh

loud snow
#

Like english and social studies

neat lintel
#

Oh

loud snow
#

I got back on track when i was in like 10th grade

neat lintel
#

Well math is different

loud snow
#

Not really

neat lintel
#

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

loud snow
#

Wait

#

O

neat lintel
#

That’s my last chance

loud snow
#

What are you saying

#

APs dont have prerequisites?

neat lintel
#

Yes they do

loud snow
#

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

neat lintel
#

The only pre…….. for Ap stats is algebra 2 and algebra 1 and geometry

#

Idk why but it says eligible grade: 12th

loud snow
#

Maybe im wrong or things have changed

neat lintel
#

But you can literally take it in 11th

#

Why does it says eligible grades: 12th

loud snow
#

Maybe its a school specific thing

#

Some schools let you take as many APs as you want

neat lintel
#

But can I take it in 11th?

loud snow
#

Try asking

neat lintel
#

If it says eligible grades 12th

loud snow
#

I was able to ask to skip pre calc and it worked

neat lintel
#

WOW

#

I’ll try that

#

Cause google say I might need to take pre calculus

#

To take Ap stats

loud snow
#

Why do you want to take AP stats so badly?

neat lintel
#

And it also says you can take pre cal and stats both

#

Google***

neat lintel
#

Ez

#

No need to worry about

#

8483&4&4&48;&:@:$202

#

Calculus harder

loud snow
#

Not rly

#

Imo stats is hard because its a lot of memorization for the answers

neat lintel
#

WHAT

loud snow
#

I remember having to memorize how to write out hypothesis test prompts

neat lintel
#

#

Well either way

#

I’m taking it

loud snow
#

And its pretty much remembering 3 sets of 6-8 sentences depending on the contezt

#

And then there are still other questions to do

neat lintel
jagged forge
neat lintel
#

Word problems

#

?

flint basin
#

easy

neat lintel
#

In AP Stats.

#

Is that what u meant

neat lintel
#

$$ \int \sec(x) dx $$
$$ \int \frac{1}{cos(x)} dx$$

fathom swallowBOT
neat lintel
#

Multiply top and bottom by cos(x):
$$\int \frac{cos(x)}{1-sin^2(x)} dx $$
$$ u = \sin(x)$$
$$ - \int \frac{1}{1-u^2} dx$$
$$ - \tanh(u) + C$$
$$ - tanh(sin(x)) + C$$

fathom swallowBOT
neat lintel
#

wait

#

arctanh

#

uuuh

#

I umm

#

wait

jagged forge
#

hmmmm that seems right

#

idk i purged this stuff from my brain

#

u convinced me

neat lintel
#

It's not right

#

wait

#

it is

#

I keep messing up while checking my work