A little history of e

Some students remarked on why I actually recognise e, that is, . Well, e is a rather unique constants. Firstly, for all JC students, we see it our daily algebra & complex numbers. Students [...]

Some questions that students ask recently.

I’ve been asked many times recently about what university course to take, and also what university to go too, etc. Some students ask me how does Financial Mathematics work? So I’ve [...]

Financial Engineering (I)

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 [...]

Financial Engineering (I) #2 – Introduction to No Arbitrage

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 [...]

Financial Engineering (I) #1 – Overview

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 [...]

What are stochastic and deterministic processes?

During class, I occasionally mention to students that the calculus you learnt is deterministic and they go uh huh. So like what is non deterministic?! I’ll attempt to give some simple [...]

What is a Markov Process?

A few students that have great interest in going into financial mathematics, be in JC students or Uni students that were taught by me before, asked me where to start. So I often recommend them to [...]