Terrible!

I almost forget the stochastic process as I took it several years ago. So my arguement is just based on simple logic .

<t>1) two loaded dices: with 1, 2, ..., 6 coming up with various probability (could be different).is it possible that when we roll them both, the sum 2, 3,..., 12 comes up with the same probability?i.e., P(sum=S)=const., , S = 2, 3, ..., 12?If two loaded dices are the sameFor symmetry, we know P1=P6...

QuoteOriginally posted by: horacioaliagacorrelation between observed credit spreads and calibrated average jump size in ajump-diffusion model (07, 08, 09, 10/2008)Sounds interesting, is it your works?

<t>QuoteOriginally posted by: penguinaQuoteOriginally posted by: tournesolHi All, the fact that I haven't received any text to the question below indicates really how the Quant community on Wilmott forum is blind. I do think that "Quants" should better recycle in math or physics where they belong. B...

Is it this paper ? Measuring and Modeling Execution Cost and Risk

<t>People like to run from one side to other opposite sideand run back again. That's why I believe it willnot be an end, of course , the recover progress shouldbe slow under strong regulation.Securitization is a good tool to reduce the risk. Now everyoneask: Please prove it! But unfortunately, it ca...

<t>I agree with jawabean. The problem is not clear here. If for an option, it is easy to use risk neutral P to calculate.If just for stock price today, of course, it will be 100$, otherwise, I can sell it immediately, to make money/or lose money...I think the problem here is not exactly what he want...

<t>QuoteOriginally posted by: jawabeanQuoteOriginally posted by: letiandAs I know, the definition of markovian processes says that the future state depends only upon the present state and is conditionally independent of the past states.Why we need to know a liittle bit of history? THanks...i meant h...

<t>QuoteOriginally posted by: lord12r = 0.1 u = 1.2 d=.9. John thinks the stock will go up and makes a bet with Jerry. If S1>S0, John will $100 from Jerry. If S0<S1, John will give $100 to Jerry. Who has the advantage?An idea is the following: five cases for each guy. I think theycan hedge out the r...

<t>QuoteOriginally posted by: jawabeanQuoteOriginally posted by: Zedr0nindependent increments are a big plusone such advantage is that you don't have to know the history from the beginning of times. in brownian motion processes, all you you need to know is where is it now in order to get an idea of ...