MIT 15.401 Finance Theory I, Fall 2008 View the complete course: ocw.mit.edu/15-... Instructor: Andrew Lo License: Creative Commons BY-NC-SA More information at ocw.mit.edu/terms More courses at ocw.mit.edu
Пікірлер: 90
@oussamachouichi56777 жыл бұрын
Words can't describe the greatness of this professor. Great lecturer.
@dartme183 жыл бұрын
Wow, that's pretty high praise, I guess I'll listen then.
@sudhirpatil34343 жыл бұрын
Prof has rare combination of intelligence n a bit of humour- amazingly he also possesses skill n ability to simplify seemingly complex subject !!
@BB1CC6665 жыл бұрын
No wonder why MIT is freaking good
@andrewstoehr2 жыл бұрын
All these new youtube option gurus out there need to watch & learn this series
@patzer91372 жыл бұрын
Facts
@gregorybattis95885 жыл бұрын
I've zoomed through half this course in 4 days and already starting to get the feeling I am going to miss these when I have no more to go over.
@kritikashanker31153 жыл бұрын
Can you tell me some similar resourses?
@NazriB2 жыл бұрын
Lies again? Samsung Ericsson
@gregorybattis95882 жыл бұрын
Back again for the 5th time going through all of these lessons
@frv66107 ай бұрын
Ye, I will look up his name to find more
@tgwashdc8 жыл бұрын
What an engaging presentation with intellect and fun in equal measure! The fun part helps anchor the rigorous points.
@unknownx2k78 жыл бұрын
andrew lo is the man !!
@anthroporraistes_ Жыл бұрын
45:16 There is a general formula for the quartic equation. In fact, the Abel-Ruffini theorem says that there isn't a closed formula for higher orders.
@forthrightgambitia1032Ай бұрын
And no one cares in the real world. You just use numerical methods to get the roots.
@harshmalik34702 жыл бұрын
One of the greatest financial classes I’ve seen.
@rnavarrorubio8 жыл бұрын
I really like this professor.
@zamokuhlem57356 жыл бұрын
Amazing lecturer and I absolutely love how you pronounce finance.
@nikolai228 Жыл бұрын
45:26 Actually there is a formula for a 4th degree polynomial. There is, however, no formula for n >= 5 in general. To read more about that check Abel's impossibility theorem and Galois theory.
@frv66107 ай бұрын
Does that help with predicting vix or commodity prices?
@nikolai2287 ай бұрын
@@frv6610 No
@MsMakasara7 жыл бұрын
excellent lecture. I wish all professors were like him.
@althafyoosuf79453 жыл бұрын
Awesome
@mattsisson56942 жыл бұрын
Great course and professor! Reading all Lo's books asap
@lizzyyan94837 жыл бұрын
Thank you, it is so nice. I am a FX sales ,after listening your lesson, it makes more sense.
@americahenriquez144 жыл бұрын
This professor is the best
@ibraheemmoosa3 жыл бұрын
Reference to Abel-Ruffini!!! Can this course become any more interesting!!! Although he says that there are no formulas beyond cubic, actually there is formula for quartic equations. It is when you get to fifth order polynomials and beyond that there is no general formula.
@herp_derpingson5 жыл бұрын
This looks like the ReLu activation function.
@enisten3 жыл бұрын
It looks like a hockey stick.
@simsquad11 жыл бұрын
This lecture is great, i had structuration courses, but this one is the best!
@sherefemad39058 жыл бұрын
Juju simsquad
@arrowb34084 жыл бұрын
This is the most sophisticated instrument for me to retake nimbly and regurgitate over and over again. Yes, this video is the most rudimentary but essential for me to jump into this unknown water that looks like either swamp, quicksand or the ocean. At least I got Prof Lo's safety vest and I can carefully to "test" the water....Hahaha, a good lecture in strict COVID isolation period in Down Under......STF.............
@arrowb34084 жыл бұрын
Yes, we need to get some other materials by our own. Got A. Lo's point.
@mattcharlan11 жыл бұрын
I'm looking for a lecture from MIT about SELLING options. I would like to see more about seeking long theta. If the Brownian Motion explains the random walk of a stock and black-scholes is a decent approximation to value options, one should be able to SELL out of the money options during high Implied Volatility environments. We should be able to take this idea farther in terms of buying Calendar Spreads and managing Vega. Thoughts?
@peteneville6983 жыл бұрын
Seven years on may be too late but I recommend a book by Nasser Saber called "Speculative Capital & Derivatives Vol 2". His idea is that options are not so much the right to buy or sell (which only apples to the holder) but are merely a forward contract where one side has the option to back out by pre-paying a statistical estimate of what they would have been likely to lose. He also talks about the movement of stock prices NOT being random, but being an in-built feature of the logic of a stock in the first place, this then leading to the reasoning of Black-Scholes, which couldn't work if prices were truly random..
@kieronmckay42765 жыл бұрын
Let me get some of that Xantac lol-This guy, wish I could have taken his course :D
@IStillHaveDialUp11 ай бұрын
45:06 Imagine a Math professor giving you a nerd award 😂
@Lekead7 жыл бұрын
Great lecture. Is it possible to gain access to course 15437 Options and Features that he mentions in the beginning?
@utuberme17 жыл бұрын
I was wondering the same thing.
@Younessss_4 жыл бұрын
On the MIT courseware but has no video lectures unfortunately
@siamgangte28262 жыл бұрын
Let's write to MIT
@YusifRefae2 жыл бұрын
@17:30 that's not quite true. if you sell a covered call, your losses aren't unbounded. you only miss out on potential profit. for example i bought 100 shares of CPB stock at $45. then i sold a call at $47. the price went up to $49. my option got exercised and i had to sell my 100 shares at $47, so i made $200 in profit, when I could have made $400. sad day for me. but i still MADE money in the end. I didn't actually 'lose' the extra $200, i only missed out on potential gains. theoretically, losing $200 and not gaining $200 are the same thing, but in reality and in your bank account, that's VERY different. i wish he had focused more on the selling of options, since buying options is very risky business akin to gambling imho. but i understand that options trading is easier to understand from the buyer's perspective than the seller's.
@alxjones6 жыл бұрын
Small correction: the professor states that "there are no more formulas beyond the cubic". However, there is in fact a quartic formula for solving general fourth-degree polynomials, and there are no more beyond that.
@unitedstatesdale2 жыл бұрын
*A butterfly spread is aka Bernies worm.
@ja78574 жыл бұрын
This is so interesting
@mavesch51015 жыл бұрын
Niccolò Fontana Tartaglia is his "colleague"
@ManiBhushanmath4 жыл бұрын
Excellent and extremely good
@a508515154 жыл бұрын
25:34 why is the payoff 0 when the price drops under 50. when we sell short, we get $60 and we need to cover our position so if the price drops to let's say $40. we don't need to execute the option but don't we need to buy the stock at $40 from the market and return the underlying security?
@jivillain4 жыл бұрын
“Payoff” refers to the payoff at expiration
@elicavadcavadzade82022 жыл бұрын
I could not understand that part completely. If the current price goes down to prices less than 50 then it will not be profitable for the buyer of call option. That's why it is zero For the second part, there is 60. Individual may think that the range will be between 50-60. But there might be some people who believe the price will be much more, for instance 80 90. And they will be willing to buy this call option. So, after 60 dollars the graphics is also bounded. Idk, if I understood in a right way 😶
@elicavadcavadzade82022 жыл бұрын
I guess i catched it. In order to reduce the cost of call option at 50 dollars, individual shorts it at 60 and gives up the unlimited part(where he/she could get more profit)
@abelt.thomas15212 жыл бұрын
Can somebody tell me who is the professor? Amazing
@bganbesfien7 жыл бұрын
Professor, [@time 13:13] isn't that the MAXIMUM payoff for put =20? Given Ex Price $20, maximum payoff from a PUT should therefore sensibly be Pt ~ max [ 0, K - So], when So=0.....?
@baddar20076 жыл бұрын
Yes. Note slide 8 at 17:58
@emptyhearted99818 жыл бұрын
Andrew Lo is a bad man ! BABY YEA. he knows where to get good truffles and cain!party animal
@bautistabaiocchi-lora13392 ай бұрын
long andrew lo
@pedalesmexicali6 ай бұрын
Nope, you won’t see me next Wednesday. I’m just passing thru in KZbin in 03/2024.
@arrowb34084 жыл бұрын
How did kids in the lecture caould calculate the precise rate of volatility?........STF....
@JohncTrumpet2 жыл бұрын
The are no formula's beyond the quartic. He doesn't know his Galois theory!
@jimmyalan93 жыл бұрын
the best
@hatemasfar8854 жыл бұрын
hello, can anyone tell me what is the term used when someone sells assets before a predicted market crash?
@vishalpoddar4 жыл бұрын
bear market??
@enisten3 жыл бұрын
@@vishalpoddar Panic selling?
@andreasapei28593 жыл бұрын
Dumping?
@enisten3 жыл бұрын
@@andreasapei2859 I think mine is the right answer. But he didn't even bother to like it.
@andreasapei28593 жыл бұрын
@@enisten probably yes, dumping is kinda used more when talking of market manipulation
@mYTHklm3 жыл бұрын
CARDANO ADA
@martin_c3 жыл бұрын
45:23 actually there is a formula for quartics, but none beyond that. en.wikipedia.org/wiki/Abel%E2%80%93Ruffini_theorem
@rockatheman14 жыл бұрын
@13:25 he says the maximum upside of the put option is $10, but shouldn't this be $20? K - St = Max profit, 20 - 0 = 20?? What am I missing?
@Copepiece4 жыл бұрын
your right. its a small mistake, his x axis doesnt start from 0
@wcottee3 жыл бұрын
@@Copepiece Thanks, I was wondering that also.
@enisten3 жыл бұрын
@@wcottee Me, too. And then I looked for a comment about it, and I wasn't disappointed.
@youtubeshortsfactory1.1m983 жыл бұрын
but why doesnt discuss about differences in premium price
@cyd201219 күн бұрын
ReLU is bizzare structure?😁😁😁
@StoicismDigest2 жыл бұрын
is there anything on the Greeks? Can't find it and my prof isn't the greatest at explaining or writing... :(
@neelmoradiya1389 Жыл бұрын
🇮🇳🇮🇳🙏🙏👍👍
@datguyrahul2 ай бұрын
51:25
@MrPennstate20147 жыл бұрын
Xanax, not Zantac.
@MrDarknightkiller2 жыл бұрын
I want to be in this class room
@谢晓楠7 жыл бұрын
Actually Einstein published the thesis in 1905
@b.s.rathore43064 жыл бұрын
Akon with redbull
@dhruvjoshi87445 жыл бұрын
43:04 why are you smiling miss! and that N I C E guy with red bull 52:55, probably my professor would had kicked me out of class
@kythoaipham30837 жыл бұрын
:(( omg a great profess
@28jery8 ай бұрын
Useless just theory. No experience in battle. That's nothing.
@frv66107 ай бұрын
So now when Ukraine-Russia war goes on, during this battle do you buy some commodities?