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This is a question from TJC Promotion 2017 Question 10. Thank you Mr. Wee for sharing. Mr. Scrimp started a savings account which pays compound interest at a rate of r% per year on the last day [...]

How far has modern technology made it unnecessary for individuals to possess mathematical skills? Argument 1: Modern technology has provided us with tools that automate mathematical operations [...]

Before attempting to read what we have here, students should revise their basic probability and linear algebra first. Financial Engineering (I) #1 – Overview Financial Engineering (I) #2 [...]

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 [...]

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 [...]

So I understand that I lost many readers for the Sampling uploads.It is a bit difficult to the intensive use of notations and also the need for statistics knowledge. So here I’ll review a [...]

This is a rather important topics for anyone interested in doing Finance. Lets look at their definition first. A Martingale is a random process with respect to the information filtration and the [...]

Let be an n-dimensional vector of random variables. For all , the joint cumulative distribution function of X satisfies Clearly it is straightforward to generalise the previous definition to join [...]

Consider the following contract 1. Pay the price p at t=0. 2. Receive at time t=k, k = 1, …, T *Cash flow can be negative So what does the above contract mean? One pays a price p at time in [...]

As some of you observe, I’ve been posting a handful of undergraduate and postgraduate materials or courses here. Some close students also asked me to share more on financial engineering. So [...]