Risk Latte - Quantitative Finance

Quantitative Finance

  A Double Mean Reverting Model for analyzing Stochastic
    Volatility

  Estimating Correlation Vega of a Basket

  The Need for a Brownian Bridge to value Derivatives

  The Strange Equation of physics that turned our
    world Upside Down

  Valuation of Callable Options and Structures

  Maximizing Entropy and the 50:50 rule in the
    financial markets

  Raising Transition Probability Matrices to
    Non-Integer powers - a problem in Quantitative
    Finance

  How do we model Stochastic Correlations?

  Fibonacci Numbers and the Golden Ratio - An
    Eigenvalue problem

  What is Model free Implied Volatility?

  Analysing the Determinant of a Variance-Covariance
    or a Correlation Matrix

  In Finance, we use the counterintuitive,
    Physics-type “Randomness”

  What are “Linear” and “Non-Linear” systems?

  Understanding the Black-Scholes Partial Differential
    Equation (PDE)

  Why are Asset paths unpredictable in the short run?

  Why do we have Log Returns in continuous time
    finance?

  How Random are Random Numbers in a Monte Carlo
    Simulation problem

  When a Stochastic Differential Equation blows up on
    an Excel spreadsheet

  The Problem with the Probability measure

  Uncertainty Principle in Quantitative Finance and
    Probabilistic Correlation

  Quantum Random Walk - Could this be a model of
    Financial Assets?

  The "Zero-Space" in interest rates, financial assets,
    and our lives! - Part II

  The "Zero-Space" in interest rates, financial assets,
    and our lives! - Part I

  Parabolas in Financial Markets

  Volatility, Correlation and the Variance-Covariance
    Matrix

  Partial Differential Equations in Finance

  Cleaning a Correlation Matrix of Asset Returns -
    Spreadsheet Example

  Principal Components Analysis and the Cholesky
    Decomposition

  Monte Carlo Integration on Excel spreadsheet

  Using Point Biserial Correlation in Credit Analysis

  Mathematics for Traders

  Breakdown of Credit Correlation Matrix for a First to
    Default Basket

  Monte Carlo Simulation by Cholesky or PCA?-Part II

  Monte Carlo Simulation by Cholesky or PCA?-Part I

  A Beginner's Guide to Credit Derivatives

  CDO Pricing Puzzle - Hoping for a "Model Nirvana"

  Enhanced Numerical Methods with for Options with
    Barriers

  Arc Sine Law-A Trader's Dilemma

  Interest Rates and Newton's Law of Cooling

  Interest Rate as a Call Option

  Why so much fuss about Taylor Series Expansion?

  Black-Scholes in English

  Once Again an Infinite Series

  A Simple Credit Risk Model for Emerging Markets

  An Infinite Problem

  The Back of Beyond

  Asian Connections

  Lessons in Stock Picking: A Stock-picker Eyes Late
    Stage Cyclicals

      (Traders, NY)

  Option Pricing with Pizzas

  De-Mystifying "Rocket Science"

  Blowing Up - How Nassim Taleb Turned The
    Inevitability Of Disaster Into An Investment
    Strategy

      (Posted with permission)

  Estimating Implied Volatility using Newton-Raphson
    method

  Heston Stochastic Volatility Model and pricing
    second generation Exotics

  The Resurgence of Stochastic Volatility Models

  Zero Volatility of Assets - Reality or Excursions in
    the abstract space?

  What volatility to use for pricing Barrier Options

  Trading Volatility - Strategies to buy and sell
    volatility of stocks

  Relationship between Asset Volatilities and Spread
    Volatility - II

  Relationship between Asset Volatilities and Spread
    Volatility - I

  Hedging Error due to Volatility Smile - the first
    lesson of a trainee Trader

  Local Volatility using Jump to Ruin - An option
    trader's tale

  Leland's Formula for Volatility Adjustment

  Straddle Options - A New Volatility Product

  Implied Volatility from Market Jumps: a Trader's
    Choice

  The High and Low of Asset Prices - Parkinson's
    Approach

  Volatility Trading Using Vanilla Options

  Volatility as an Inverse Problem - A Very Simple
    Explanation

  Estimating Implied Volatility on back of an envelope

  Estimating long term volatility regimes with Markov
    chains

  Thirty Five Years of Volatility

  Barriers and Volatility

  KOSPI Derivatives - A Recipe for Disaster?

  Volatility and Long Term Options

  Why Hong Kong Stocks should Fall? – Indications
    from the Volatility Index

  HongKong Volatility Index at record low!

  Options on Variance Swaps

  Management Of Negative Gamma - Part I

  Asian FX Volatilities - Turning Point?

  Ripples in the Regional Currency Options Market

  Exotic Structures Weighing on USD/YEN Options
    Market

  AUD/USD

  Has the USD Rebounded?

  G7 Meeting, Long Gammas and Event Risk in FX
    Options Market

  Hedge Funds Shorting USD/YEN and Buying USD
    Calls: A Case of Skew Inversion