I came across this interesting algebra/ arithmetic problem the other day. … Do you think this will always work? Hint: We can use algebra to prove this cool sequence easily. Arithmetic [...]
This is really important for anyone interested in Finance Modelling. As what the movie Wolf on Wall Street says: They are referring to a geometric brownian motion. Firstly, we will begin with the [...]
Show that . Hence show that For the first part, we can simply apply Euler’s Formula, that is The next part is a little more tricky, and since its hence, we will use what we solved [...]
Lets look at brownian motion now. And yes, its the same as what our high school teachers taught about the particles moving in random motion. Here, we attempt to give it a proper structure and [...]