Thank you so much I get it now. You explained everything in 30min very clear, and there is our teacher taking weeks and I got nothing. Good job!!!
@frederikwoite39162 жыл бұрын
You are beyond skilled in both teaching and QF!
@mphikelelimbongiseni62772 ай бұрын
Useful amongst many, Thank you👏
@georgekollias34428 ай бұрын
great video, simplicity at its best :)
@topticktom8 ай бұрын
Didn"t understand any of it, but I did enjoy the 49 minutes anyways
@homodeus-k9f Жыл бұрын
Hey I think it's great work here and now that I've started my financial engineering masters I can finally understand this. Just one thing tho - in the risk-neutral probabilities coding part, I think it should be u = np.exp(sigma * np.sqrt(T / N)), d = 1 / u, qu = (R - d) / (u - d)... I think there was a mixup somewhere
@gatsbyliu1084 Жыл бұрын
I am on my way study financial engineering master too :), so good to see another person in manadarin name
@teroliikala2 жыл бұрын
Brilliant channel. Keep it up!
@benardkiplimo350810 ай бұрын
Well done! Thank you for the video
@KazekageKidd3 жыл бұрын
Fantastic lesson mate., really like this approach.
@daves1413 Жыл бұрын
In 15:36 you say "bank account (Su-Sd)". I think it should be "stock units" not "bank account units" for your beta, no?
@Picklpickls2 жыл бұрын
It is an amazing video!
@aniruddhvasishta8334 Жыл бұрын
At 32:49 -- won't you get a recombining tree even if ud is not 1 since if the stock price goes up then down the price will be udS_0 whereas if it goes down then up you'll get duS_0 which are the same thing? In these cases it's just not true that S_2 = S_0 but I don't see why that's an issue.
@PJokerLP Жыл бұрын
Hey, thanks for your video. But shouldn't type 2 arbitrage (3:36) be defined as P(V_T>=V_0) = 1, since your definition allows for losing money by having V_0 > 0. Greetings and stay healthy Marcel
@chykeinvesting94292 жыл бұрын
hey this was so great, I actually am using this to help me secure a quant position at a trading desk... I am just confused on one part, can i schedule a one on one?
@benardkiplimo350810 ай бұрын
Did you get the job?
@chykeinvesting942910 ай бұрын
@@benardkiplimo3508 nah, I wasn’t advanced enlugh
@samuraijgt3 ай бұрын
Why does the bank account not decrease in value when going to the down state
@joshuakendrick35284 ай бұрын
How does the coding change for American options?
@gutefrage94252 жыл бұрын
I understand it but what is it good for? How to apply it?
@jayjayf96993 ай бұрын
If you have a 4 step time tree the number of nodes does not equal N+1
@wqw94752 жыл бұрын
Hi very nice video but I think you have forgotten to take the max between the expectation and the payoff for each node.
@jonathonemerick20842 жыл бұрын
That’s the pricing formula for American style options not European style
@wqw94752 жыл бұрын
@@jonathonemerick2084 For European you never need to take the max. I mean exactly for the US kind the author forgot to take the max for each node.
@QuantPy2 жыл бұрын
This video was for European pricing only. No max required for each node? Please check another video for American style option pricing kzbin.info/www/bejne/gWOsqmuYeNKLoM0
@wqw94752 жыл бұрын
@@jonathonemerick2084 ok I got it because that's for European pricing. I thought it's for American kind. Thanks for your response.
@wqw94752 жыл бұрын
@@QuantPy Yes I get it now since I was working on American side so I thought this example too. Thanks for the response.
@annog66732 жыл бұрын
You flipped the meaning of alpha and beta right on the middle and got a little bit confused there, didn't you? Or is there a meaning behind using beta for the weighting of stock and calling it bank account weighting?
@QuantPy2 жыл бұрын
The alpha and beta terms are just constants. In the video I've assigned Beta as the number of Shares and Alpha as the number of bank account units. Feel free to use your own constants and go through the math 👍