For what Merton was awarded by Nobel Prize??

QuoteOriginally posted by: spinanFor what Merton was awarded by Nobel Prize??the black scholes equation. Merton and Black were smart...Scholes was a snake oils salesman.

by the way, I am convinced Thorpe, along with a slew of others, knew this shit but didn't want to reveal it. sort of lame to do so, wouldn't you think?

in the same way, I am convinced that Simons knows a bunch of shit in IR modelling that other so-called famous quants are only starting to know.

but, who gives a shit about the equation...ok, let me be more precise, it was the ability to hedge under the assumption of risk neutrality...that is the payoff in the work.

Did they get it the same time?Is there any story about it on net?Can you be more specific about the Scholes??

The causality is the other way round.. it is because you can hedge or replicate the option that you can then ignore risk preferences...

QuoteOriginally posted by: NoniusI am convinced that Simons knows a bunch of shit in IR modelling that other so-called famous quants are only starting to know.I wonder how much of this says about Simons, and how much about you. But I think I know what you're getting at

the black scholes equation. Merton and Black were smart...Scholes was a snake oils salesman. For their time, Merton and Black were great contributors to QF. Simons has advanced QF technology far beyond BS's simple model.I am convinced that Simons knows a bunch of shit in IR modeling that other so-called famous quants are only starting to know. Absolutely correct, but few if any famous quants are starting to know. LT: But I think I know what you're getting at I'm afraid you made it very clear to me you don't know squat about IR modelling, even after the basic technology is fed to you on a silver platter.Newton

QuoteOriginally posted by: N LT: But I think I know what you're getting at I'm afraid you made it very clear to me you don't know squat about IR modelling, even after the basic technology is fed to you on a silver platter.Newton,Good to see you. What basic technology?

Good to see you. What basic technology? O-U in tensor form to capture torsion. (It's the solution to your many-body problem)Newton

QuoteOriginally posted by: NO-U in tensor form to capture torsion. (It's the solution to your many-body problem)Newton,Tensors are useless in IR modelling. You need twistors.

LT,Tensors are useless in IR modellingOnly if you already know the SDE....You need twistorsNo. You don't really need twistors or coordinates in a clifford algebra, but sticking with a orthogonal basis requiresmore effort to solve the problem.Newton

QuoteOriginally posted by: NNo. You don't really need twistors or coordinates in a clifford algebra, but sticking with a orthogonal basis requires more effort to solve the problem.I'm sure it does, Newton. I'm sure it does.

"Dearly beloved brethren, the Scripture moveth us in sundry places to acknowledge and confess our *manifold* sins and wickedness; " "Come on let's twist again like we did last summer Yea, let's twist again like we did last year Do you remember when things were really hummin' Yea, let's twist again, twistin' time is here Yeah round 'n around 'n up 'n down we go again Oh baby make me know you love me so then Come on let's twist again like we did last summer Yea, let's twist again, twistin' time is here."- Chubby "quanternion algebra" Checker"solvable Lie groups are certainly not simple groups"(time, interest, risk, return)Now, I want that unitary, orthogonal solution baby, I need a jet plane like Jim Simons.