Thank you for educating the terminology of FV Annuities in a well detailed expression to an Audience 😊
@LifeARichJourney3 ай бұрын
Very good video, though in practice it is confusing since he used So=100 and K=100. It took me sometime to figure out that I should be using K and not So for other examples
@samiqaddoumi86714 ай бұрын
Would it be any different for European or American options ? Which one is in the video, what is the difference in the process ?
@heshanpalliyaguruge63335 ай бұрын
You explained it so well thank you!!!
@antardas48305 ай бұрын
I you forgot 0.5 in your Convexity adjustment formula.
@brandmanager45955 ай бұрын
Your explanation is flawless and easy to follow, even though it is one of the most complicated financial models. I enjoyed your video. Thanks a lot- BSc final year Student from the 🇬🇧
@IamGenith6 ай бұрын
Hi, could we save this in our playlist please. It seems it is disabled. It helps us if you would allow viewers to save your video. My classmate wouldwatch it too
@VinodKumar-yp8gd6 ай бұрын
Hello could you please explain how do u arrive at 982.06 Is it 964.54+1.7955% = 981.858…?
@triple7marc8 ай бұрын
In which situation would you use this method over portfolio replication?
@PatrickTreacy-lc3fr9 ай бұрын
lifesaver thanks a mill
@enmass9010 ай бұрын
This is amazing. Thank you 🙏
@AdkJmly10 ай бұрын
Somehow i got 2.07 not 2.09
@shir12293010 ай бұрын
Please note that d should be equal to 1/u. if you do that you realize that your conclusions will be diff.
@fadilvlogs306611 ай бұрын
Thanks man you saved my life ❤
@Bbdu75yg11 ай бұрын
Amazing!🎉😊😊
@Philgob11 ай бұрын
“a little bit of algebra” brudda in what world is that a little bit… by hand that’s a least 5 mins
@ochiengderrick43562 ай бұрын
Talk about it 😹
@ioannis8234 Жыл бұрын
what if this was a European option?
@xhantim3694 Жыл бұрын
Thank you Sir
@shibbirahmed3661 Жыл бұрын
Thanks Sir
@user-og7jq1qg5f Жыл бұрын
Very clearly explained. Thank you very much!
@monarchgupta2712 Жыл бұрын
hey my determinant is coming out to be zero
@emadr5780 Жыл бұрын
Tnx a lot!
@mikoaj2177 Жыл бұрын
yare yare, u r the best <3<3<3
@andrespachecotorres3360 Жыл бұрын
Beautiful explanation.
@daileizhang4457 Жыл бұрын
absolutely beautiful。。。thank you so so much!
@TheAxhol Жыл бұрын
I'm guessing that european call options use (1+r) instead of compounded.
@jamesmason7979 Жыл бұрын
Excellent video. It really came in handy for me.
@elizabethp.kanizin9009 Жыл бұрын
What is taught in Form 6 Statistics class. 🤔But I can't remember how come I did not sit for my Mechanical Maths paper!
@Ahmed-jl7uh Жыл бұрын
Minute 2:46 why the minus? Can you explain how you got to the minus part?
@Tyokok Жыл бұрын
Thanks for the great video! One question: 7:34 your sigma P squared formula only applies situation that N asset has same volatility and all same pair Cov. why?
@spencersingh2036 Жыл бұрын
when calculating, does the duration have to be a whole number
@peters972 Жыл бұрын
An assumption for this to work is that the stdev of past history of the asset will remain similar during the future position, so take care. And for the portfolio, things that seem un-correlated now may become ever so correlated in the future. Have a firm understanding of what the math is telling you, and what it is not.
@No_BS_policy Жыл бұрын
Worst part of this theory is that it flat out assumes that asset returns are gaussian. Taleb has shown that much of modern finance theories are just piece of garbage.
@makeittrades57502 жыл бұрын
That's how teaching is done!
@lars34672 жыл бұрын
I dont comment often, but great video! Really helped me out with the early exercise
@prchaser20812 жыл бұрын
Why 3 steps? How is this determined? Why not 300 steps over 1.5 years?
@violaye37852 жыл бұрын
so clear! you are excellent! thank you very much. why no new video any more, such a pity.
@aidanharrison59922 жыл бұрын
Thank you for this. Excellent teaching skills. I had to use a bit of the comments for some help but I got it
@riripurpletini2 жыл бұрын
As the seller would I book the accrued interest paid at the time I sell the bond(the trade date ?) not the issue date ?
@viktorkhan85182 жыл бұрын
Hi, thank you for your great video! But may I ask how does 1/2 make the calculation easier in the Lagrangian?
@fincampuslecturehall48332 жыл бұрын
Hi Viktor, it just makes the calculation simplier. If you minimize risk or half of it, it doesn't impact the optimization.
@joshmccraney40202 жыл бұрын
Take a derivative of the double sum and look at what you get. Consider sum(xi xj) for i and j 1:3. Then we have x1x1+x1x2+x1x3+x2x1+x2x2+x2x3+x3x1+x3x2+x3x3. Now a derivative w.r.t. x1 = 2x1 + 2x2 + 2x3. This means if we multiplied the sum by 1/2 we would have as the derivative x1 + x2 + x3, which is simpler.
@ahmedmabrouk52762 жыл бұрын
Thank you , really enjoyed it
@hb-bz5hx2 жыл бұрын
Just a note, it is unwise to round until the final answer. As, if this same exercise is done without rounding until the final step the answer is 1.89 years not 1.88. WATCH FOR THIS IN AN EXAM
@thefuckingpearl2 жыл бұрын
Damn this was such a clear explanation!!
@mohanadmahdy37612 жыл бұрын
That's awesome! never thought that this concept can be that easy.
@benmbarekmarouane86762 жыл бұрын
Thank you sir!
@Brother_mar2 жыл бұрын
you are the G.O.A.T my friend!
@sjhughes03132 жыл бұрын
Hi, for Step 4 and 5, wouldn't it be the opposite? So if alpha is more than 0, that would mean that the stock went up in price more than we predicted, so it's likely overpriced and we should go short. Or am I missing something? Also, thanks for the video.
@sjhughes03132 жыл бұрын
Ok, I know what I was missing. In step 4, when you say "actual" (mean) returns, I was thinking you meant future (i.e., live) returns. But you when you say actual, you mean it as "actual historic" mean returns. Therefore, when the alpha of an asset is greater than 0, we're saying that, historically, this particular asset has had better returns as compared to the other assets in the portfolio, specifically regarding this asset's returns with respect to the chosen macro-level market factors.