The Money Formula : Dodgy Finance, Pseudo Science, and How Mathematicians Took over the Markets.
- 1st ed.
- 1 online resource (264 pages)
Intro -- The Money Formula -- Contents -- Acknowledgements -- About the Authors -- Introduction -- 1 Early Models -- Monetary Alchemy -- Gold Standard -- The Systems of Nature -- Rational Mechanics -- Finding Equilibrium -- Intrinsic Value -- 2 Going Random -- Theory of Speculation -- Efficient Markets -- Irrational Markets -- Not Normal -- Mental Virus -- 3 Risk Management -- Fundamentals -- Beauty Contest -- Technical Analysis -- Quant Analysis -- Correlation -- Well… -- Efficiency Squared -- Value at Risk -- The Edge of Chaos -- 4 Market Makers -- Options -- What are Options for? -- Bacheliers Return -- The Ultimate Machine -- Beat the Market -- Hedging your Bets -- Mathematical Dynamite -- No Risk -- Positive Feedback -- 5 Deriving Derivatives -- Time to Exercise -- Decision Cost -- New Flavors -- You cant Always Delta Hedge -- Market Price of Risk Again -- Getting Carried Away -- From the Sublime to the Ridiculous -- Hold it Together -- Model Abuse -- Pass the Parcel -- Money Crunch -- 6 What Quants Do -- What do Quants Make - and are They Adequately Paid? -- Quants vs. Regulators -- Writer-nomics -- Blinding us with Science -- Bots -- Global Brain -- Creative Finance -- 7 The Rewrite -- Blowing Smoke -- Calibrating the Crystal Ball -- Sources of Confusion -- Model Risk -- Flying Blind -- 8 No Laws, Only Toys -- A Clue -- Back to Basics -- A Model for Interest Rates? -- A Role Model -- Reasons to be Mathematical -- Quantum Finance -- Order and Chaos -- 9 How to Abuse the System -- Exercise 1: The Newbie Trader -- Exercise 2: The Hedge Fund Manager -- Exercise 3: The Risk Manager -- Triple-A -- Defeat Device -- 10 Systemic Threat -- Foresight -- The MacGuffin -- But High-Speed Trading Provides Liquidity! -- A Million Billion Dollars -- The Bionic Hand -- The System (John Law feat. Isaac Newton) -- Epilogue: Keep it Simple. Quants: The Math Sweet Spot -- Regulators: Go Full Iceland -- Economists: Wake Up -- Banks: Learn to Fail -- Traders: Why Does My Bonus Have a Minus Sign in Front? -- Journalists: Watch Out for Saboteurs -- Educators: Quantity and Quality -- Politicians: Create an FAA for the Financial System -- I Solemnly Swear… -- The Nuclear Option -- Bibliography -- Index -- EULA.
9781119358664
Finance--Mathematical models. BUSINESS & ECONOMICS / Finance.