Applications of Ito's Lemma

[@AllAboutTheOak]

the sign of a great lecturer is making tough topics simple. Respect you daily. I'm currently doing my Mfin at LSE in the UK and you wouldn't believe how complicated they like to make everything. Thanks again man.

[@yinanli4293]

my lse fellow oh god 6 years later i'm crying in my Financial Economics class

[@joseluisgalarza3707]

U😊😮

[@joem8251]

The intuitive approach this lecturer conveys is more valuable to me than MIT lecturers I've seen who focus on recondite theory at the expense of forgetting to emphasize how theory is applied. Thank you

[@tombarker5531]

What makes this professor excellent is his empathy in providing step-wise, relational explanations, and concrete examples. Everyone can do math if the teacher puts ideas in a graspable and concrete form. There will be time enough for theory when the foundation's done.

[@nuraycelebi5325]

Listening to your class, I realize that our lecturer has not taught us anything about the meaning behind the formulas and we just tried to understand or memorize the transitions! Thanks Prof Billy!, well taught!

[@AFH358]

Some parts of these Finance Engineering lectures are not very precise, but the intuition behind the calculations and formulas is very useful and really clears things up. Thanks!

[@paaaachu]

Thank you very much for explaining application of Ito in finance in such simple, intuitive and practical manner. Great job. Thank you again.

[@gauravquant8034]

seriously after 2 weeks of tumbling I watched this and all the concepts were clear in a jiffy.

[@marosal0707]

Thanks a lof, very clear. Thumbs up for the intuitive approach, if you don't mind, I will use some of this explanations with my students. I'm MSc from TU-Kaiserslautern, lecturing in MX-City. Tks.

[@ekaterinakhomchik9558]

Thank you for you videos, they are very useful! Grateful finance student from Sweden.

[@vladislavleonov8857]

Big thank you from finance student in Sydney! It’s really helpful!

[@Bea_remembrance]

Makes hard stuff easy. My econometrics lecturer would never answer simple but important calculus manipulation techniques like this lecturer. Wish I had this guy instead of the Douches teaching me

[@musicartndrama]

A very nice and easy to understand explanation of a complex topic.

[@junsheng9401]

very informative! I can get deeper understanding for Ito lemma and process.

[@raibtube]

Thanks a lot for this video - making complex things easy to follow!

[@bruceli214]

thanks for posting this lecture, tremendous help in understanding this difficult topic

[@kellyvlug5944]

You have no idea how confused I was before this video. Thank you so much ! Why do universities make it so confusing (or just skip so many steps??)

[@elahehmaleki3332]

Thank you so much . It realy help me to understanding this topic.

[@shakibishfaq8627]

You are an awesome Professor.

[@anindadatta164]

In the first case where derivative is 3S , the easy way to value the derivative is 3 times the spot price of the underlying asset.. In the second case of future valuation, the best method should be Future price= S*e^rt. When there is a plain linear relation between derivative and underline asset, why such a complicated formula should be used? Derivative is used where rate of change of Y is different for different values of X but here in both the cases it is allmost same.

[@leiflife]

Thank you so much for this clear explanation!

[@anindadatta164]

On second thought, if 3S and the future instrument mentioned in the video are of special kind of derivative which can be exercised only in the future like a european option, and cannot be traded during course of the month, then a complicated model could be justified. The model could involve calculation of expected value of the underlying asset based on its volatility and the resulting standard normal distribution based probability.

[@faustocant9381]

Nice work!

[@viveksaravanan4619]

Very useful lecture sir!!

[@casperbigomhjgaard1998]

Very good explanation!

[@sakuranooka]

Why is the stock's expected growth rate equal to the risk-free rate in a risk-neutral world? And how you define "world", I thought there was only one world, the one I can observe?

[@oxtherider]

Thank you again for this nice lecture.

[@bahaamonir36]

So glad i found this video ...

[@chogo888]

Thanks for that video. very helpful

[@looploop6612]

What is bottom part of the slide?

[@DavidCH12345]

awesome! Thanks so much

[@tarasleskiv8332]

Respect!

[@okinawapunter]

thanks

[@phinehasikanya4353]

its hard to see items on the lower part of the presentation though good.

[@lolongo]

How did S_t become equal to S_0*exp(integral yada yada) and not S_t = S_0 + integral1 + integral2?

[@abdulroqeebariwoola8905]

Exponential rule. e^a * e^b = e^(a+b)

[@naregharibyan7214]

Thanks a lot

[@arcx1000]

swear that is matt leblanc talking lmao

[@MrNiceseb]

Sorry but how can a derivative cost more than the underlying? The point of derivative is so that we can leverage, so naturally the cost of a derivative should be a fracture of the underlying, not a multiple of, correct?

[@wedeldylan]

The underlying asset's value can grow over time at a 'risk-free' rate (usually taken from the yields on US Treasury Bonds) so if you're purchasing an asset now to be delivered in 1 year's time that is worth $100 and the risk free rate is 5%, in 1 year's time that asset will be worth $105, so the buyer must pay that value on that date or else arbitrage opportunities arise for either counterparty depending on whether the derivative is priced below or above $105

[@Iridiumalchemist]

woah this so compelling

[@profbillbyrne]

Thanks for the comment. Wow. Switzerland...I wish I was there. No snow in the New York City Area this year...can't ski yet. I was wondering what your MScF program involves. Bill [e-mail]