Archive for the ‘mathematics’ Category
Wednesday, November 16th, 2011
The Black Scholes formula is a partial differential equation that can be used to price the present value of an option under certain assumptions. As with everything, you can read all about it in Wikipedia.
It turns that that figuring out the present value of an option is also a ...
Posted in finance, mathematics, programming | 1 Comment »
Friday, April 23rd, 2010
Let's say that you're playing a coin-tossing game, and you start with $1. You keep tossing forever, winning $1 if you toss heads, and losing $1 if you toss tails. What are the chances you'll eventually go bust (get to $0)? What are the chances you'll ...
Posted in mathematics, puzzles | 1 Comment »
Friday, April 2nd, 2010
Let's say you drop a ball from the Leaning Tower of Pisa, which is 179 ft high, and it bounces back 10% of the dropped height - 17.9 ft. Then on the second bounce it bounces up 10% again - 1.79 ft, and so on for ever. How ...
Posted in mathematics, puzzles | No Comments »