I discuss the standard shortcut of deriving Black Scholes PDE for option pricing with a critical look at its assumptions.

I discuss a simplified, yet intuitive model of evaluating option contracts that allows us to explore further two key concepts of no-arbitrage principle and risk-neutrality. This is the binomial opt...

I provide a mathematical formulation for the concept of arbitrage in finance to derive insights on various properties of option contracts.

I talk about the concept of arbitrage in finance and its utility for pricing derivative contracts such as forwards and futures.

I discuss a nice linear algebra problem that I have encountered recently.

I talk about a common malpractice of mixing the notion of returns with log returns in the finance literature.

I discuss a commonly used VaR estimation method that utilizes Monte Carlo simulations.

I discuss a commonly used unsupervised learning method called clustering via K-means algorithm.

I discuss Value at Risk of a single asset under the assumption the price changes of the latter is governed by a geometric Brownian motion.

I provide a gentle introduction to two important concepts; VaR and CVaR which are commonly used for quantifying risk in financial markets.