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Math The Almighty Buck Science

Gosper's Algorithm Meets Wall Street Formulas 124

peter.hill.1980 writes "Wall Street's money making formulas need to be as explicit as possible for efficiency purposes. An old, existing and famous formula — binomial options pricing formula — has now been scrutinized for theoretical optimality in a forthcoming paper by Evangelos Georgiadis of MIT using Gosper's Algorithm, proving that no general explicit or closed form expression exists for pricing."
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Gosper's Algorithm Meets Wall Street Formulas

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  • Re:be an American (Score:5, Insightful)

    by spiffmastercow (1001386) on Wednesday March 02, 2011 @03:11PM (#35360876)

    Why do Americans across the country not simply not occupy Wall Street?

    Why have you been so effectively programmed to accept the shit you're fed?

    Not a statement against sound long-term investment, but against casino capitalism and cronyism.

    I come from a country which has experienced a revolution in my lifetime.

    Why can't you?

    Because we can't get the time off work..

  • Re:Hurh? (Score:4, Insightful)

    by Fractal Dice (696349) on Wednesday March 02, 2011 @03:47PM (#35361426) Journal
    Isn't it just a bet on the variance of the underlying stock? Skimming over those models, they look like they're really all just different ways of mutating your choice of initial assumption about the distribution of possible futures.

"When it comes to humility, I'm the greatest." -- Bullwinkle Moose