@mesmith2526
Answers aren’t provided because you’re ultimately at the mercy of the specialist(s) giving you the quotes. If it seems like they’re being nice/friendly, >80% of the time it’s because you’re about to take the wrong side (for short term trades specifically). Tudor references this in the book “Market Wizards,” and I have found it to be consistent in my personal career (former head of derivative strats for institutional macro fund). Reading up on Kelly Criterion can definitely help to cultivate a better understanding of risk management and trade sizing for those interested in markets as well. Disclosure: I’m not a quant, but was blessed to have had several old school mentors that assisted in cultivating my personal competency earlier on near the start of my career, so it wasn’t systematic, but more top/down analysis that’s associated with discretionary macro.
@ksibilev
If you are math literate (undergrad level), this book is the easiest way to get into the finance math. Highly recommend.
@seanhunter111
I used to be a "strat" (quant developer) in the securities division at Goldman. The book that was recommended to me that I felt was the best was Neftci "An Introduction to the Mathematics of Financial Derivatives". A lot of students get told by their uni professors to read Hull, which is definitely not great. If you're serious about stochastic calculus, "The Volatility Surface" by Jim Gatherall is really great and goes through the models (Dupire, Heston etc) that people actually use most in options markets. There are some amazing books published by Springer on Stochastic calculus for Finance especially for interest rate derivatives but they are very advanced and way out of my league (certainly they were at the time) since I didn't study maths at university.
@dopplerdog6817
Black-Scholes is bunk - it assumes geometric brownian motion, *but no financial time series follows geometric brownian motion*! This is why so many option traders implode.
@ToluSir
I study Finance at university and we just started learning the basics of options. I look forward to learning more about them next semester.
@fordfactor
Paul Wilmott has some excellent books on Quantitative Finance. One of them showed how the Black Scholes differential Equation is really just the standard heat/diffusion equation which makes it easier to solve for many exotic options.
@singularity3724
I'm just finishing up a master's in maths and finance and from the contents page this book looks great. It covers lots of different topics. To any aspiring quants, this book would be great for interview prep.
@rich_in_paradise
Small correction: Fischer Black was not awarded a Nobel prize because he died a couple of years before Black-Scholes was recognised in 1997. Prizes are not awarded posthumously.
@ravenecho2410
Derivative markets by McDonald, Robert is pretty good - starts with financial basics then moves into option, black scholes Merton and martingales. Then one of my favorite books which covers actuarial value (expected present value) and survivor based models is Actuarial Mathematics for life contingencies by Dickenson, Hardy, Waters. Feel like knowing common financial forms like series, multiple state models, reserving maths is all super awesome and can be applied anywhere underneath a mono-decreasing convex function. So some really cool maths actuarial notation is clunky at first (like physics) but gets much more clear and utility is really good.
@1dantown
In 1998 Scholes' firm Long Term Capital Management, lost $4 billion in six weeks. ( BBC April 28, 2012)
@tethyn
Mathematical finance sounds interesting. Never had the opportunity to be exposed but I will look for this book. I always look forward to your videos to be exposed to either new ideas or new ways to learn mathematical concepts I have seen before. They layout is clean. Is it a reference book or is it for teaching the subject?
@ssgamer5693
Damn!this is exactly what I was wondering about,the relation between math and stock market!! Using calculus in options is super fun and super exciting!!!
@guitaristxcore
Im in an undergrad mathematics program, but im looking at transitioning to mathematical finance. I knew when I googled it there would be a Math Sorcerer video and was not disappointed.
@QuestForEdge
Hi, amazing video. I studied Engineering and loved books by Sheldon Ross but I heard so many critics saying that from a math perspective he is not very "precise".... I am glad to find that you also appreciate it.
@nahoskins
I have added almost every book you've suggested into my library. I've caught the bug! Would be interested to hear your reading suggestions for actuarial mathematics outside of the standard probability and statistics texts. Keep on sharing the mathegamic!
@Inddesign
I'm already drooling... I certainly want that book and what is more to learn from it... So I thank you so much for sharing this! ❤
@billyboy1997
Shreves 1 and 2 are a staple in the industry.
@jamesmillan3658
@TheMathSorcerer ,I think there's a mistake in the video. American options are not options that are sold at US Exchanges. American options just mean options that can be exercised at any time. The majority of options sold around the world are American options. It actually has nothing to do with where the options are sold.
@jongxina3595
Do I need measure theory? Im just wondering cuz this seems to use Brownian motion...
@Mandy12_12