1. Introduction, Financial Terms and Concepts
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- čas přidán 5. 01. 2015
- MIT 18.S096 Topics in Mathematics with Applications in Finance, Fall 2013
View the complete course: ocw.mit.edu/18-S096F13
Instructor: Peter Kempthorne, Choongbum Lee, Vasily Strela, Jake Xia
In the first lecture of this course, the instructors introduce key terms and concepts related to financial products, markets, and quantitative analysis.
License: Creative Commons BY-NC-SA
More information at ocw.mit.edu/terms
More courses at ocw.mit.edu
Some notable timestamps:
01:54 Key facts about the course
11:47 Background
30:10 Introductory examples
40:49 About Financial Mathematics
54:42 Real life applications / Projects
You're a saint.
Thanks
I am so glad I didn't have to pay for this course. It's usability is just theoretical...
Lots of blah blah blah, throwing terms without explainging "swap" this that, and students sit and nod as if they understand a thing...
Looks like a 1 man show demonstrating his superiority instead of explaining. If every student has to find an answer to every term he throws, then why do we need this course? This edu is such a rip-off.
Its literally the first lecture, chill there are going to be 16 more weeks...
@@DanOneOne you're basing one class lecture on the whole course looool
I'm from India and thank you to MIT for making this available. So anybody can learn from highly qualified and experienced lecturers. 🙏🙏
“The Lord is not slow in keeping his promise, as some understand slowness. Instead he is patient with you, not wanting anyone to perish, but everyone to come to repentance.”
2 Peter 3:9 NIV
ROMANS 10:9-11 “If you declare with your mouth, “Jesus is Lord,” and believe in your heart that God raised him from the dead, you will be saved. For it is with your heart that you believe and are justified, and it is with your mouth that you profess your faith and are saved. As Scripture says, “Anyone who believes in him will never be put to shame”
Matthew 11:28-30 “Come to me, all you who are weary and burdened, and I will give you rest. Take my yoke upon you and learn from me, for I am gentle and humble in heart, and you will find rest for your souls. For my yoke is easy and my burden is light.”
“For the Son of Man came to seek and to save the lost.””
Luke 19:10
God wants us to believe in His One and Only Son, Jesus Christ our Lord and Savior, who died for our sins :D When we truly believe in our hearts that Jesus is the Son of God, who died for our sins so we could have eternal life with God, we are saved from the eternal fire and have eternal life in Christ Jesus!! 💖 May God bless you all! ❤️😊
❤ so ture
damn Im in an MIT lecture with a 1.7 GPA
THE INTERNET WINS
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something like that here too 🤣
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It was invented for this before it became weaponized by the communist takeover
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00:00 Learn how math is applied in modern finance
06:54 Mathematical finance is a new field that has rapidly transformed in the last 30 years.
13:52 Understanding the different types of financial products and players in the market.
21:03 Understanding the key players and types of trading in financial markets.
27:38 Understanding the three types of trading: hedging, market making, and proprietary trading.
34:07 Understanding risk management in trading
40:22 Mathematics plays a crucial role in finance
46:48 Trading is about risk management and discipline.
53:09 Mathematics is powerful and useful in finance.
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Indeed
he isnt even teaching that lol, this is corporate finance
No, just no.
well he's not necessarily a CZcamsr, right? He's a professor of finance at MIT, so he had better be outstanding!
thats literally his job ?? lol
I'm just thankful i'm given an opportunity to see how MIT's lectures go
Tan Zi Hao hi
I am glad that you have covered almost everything that pple come across in day today life...
I've seen your couple of lectures and I've enjoyed every bit of it...
Thanks for your wonderful skill to explain and make it simple n easy to the students out there...
Is the instructor a CCP spy?
O
its not that big a deal.
My name is Deepak Agnihotri and I'm from Mumbai India, I'm so honoured to be watching this video today on my birthday 🎂 This is going to be the best birthday gift I've ever received. Thank you MIT for sharing this lecture series. Forever grateful ❤️❤️❤️
Happy birthday!
I am from Kenya , east Africa 🇰🇪🇰🇪 I have learnt alot from this clip , especially from the first lecturer from havard..... Thank you so much.
This was one of the best lectures I saw, no fancy Superhero chest beating, humble and simple yet I understood it. Thanks a lot and may we all keep learning and earning.
Thanks~~~~< for watching_and don't forget••• to hit the like>
Wow, MIT got the CEO of Lau Security Investment Holdings to teach a class
Best comment I've ever seen
AND he's Asian
Hahaha
@@David-ne2wx you didn't get it
@@KanjoosLahookvinhaakvinhookvin being Asian is a good quality regardless
44:55 choice A has an expected value of -$300 and a standar deviation of $400, choice B has an expected value of -$280 and a standar deviation of $0. So in the short run, it's better to choose A; in the long run it's better B.
49:26 in this questions, the standard deviation are the same but the expected values are positive with the same amount. Choice A it's better in the long run, while choice B it's better in the short run.
Can you explain how to calculate the standard deviation in this type of exercises? Do you see it as a binomial problem?
@@pepgonzalezcomellas3387 just using the definition of variance: E[x^2]-(E[x])^2.
The expected value is calculated by summing all values of the random variable weigthed by their probabilities.
I am from Thailand, can't imagine that I would be able study lecture from MIT. Felling grateful.
Thailand is a beautiful place!
Thank you for posting these videos online. I feel privileged to watch these !!!
@@johndavid5919 lol thank god were all further in life than you
This man knows his business. He doesn't need fancy presentation slides. Just the basic black and white slides will do.
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Plus, 2013 😂
@@luthfirakan p0ppp 0 op
@@tommasoterzano5180 so..? Plenty of amazing technology was around by 2013.
Currently i offer account management and tutoring to beginners looking to make the most profit possible from forex trading . The deal however, is that you get to pay me a 10% off whatever profit generated as commission for my service.
7:00, "What is so unique about Vega on this list."
Me: It is red
Him: Its not a greek letter
Lol I said the same. Its red
Me is me lol
MIT: It's a greek letter
Us: It's red
@@dreany816 I've been really bad at trading bitcoin lately. How can I improve so that I win more often than not?
@@murfnturf23 HI Ryan,
It's your perspective on what it is you are doing and how...I assure you.
1) take what market Gives
2) TIME <
3) SIZING
4) ALWAYS Realize Gain
5) Accept when you are wrong
I have been searching for beginner and intermediate courses on economics and finance, and to be honest quality content is rare as a rocking horse poo. As a CS grad student, I did not have a problem like this for topics in CS, EE, Math or Physics. I have come to the conclusion that you are almost the only top-tier higher education institution supporting the openness and accessibility of knowledge to this extent, and I appreciate all the effort you put in this way.
You have played a decisive role in the success of many students from all over the world
I’m a freshman, how do I start
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@@zhanying3788 Edx good place to start like me too
I've been waiting for this course to open since last year. I saw it in MIT TechTV but there were no videos yet. Thanks so much MIT for making this quality education available for everyone. I hope there would also be an edX version for this course
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Alexis Glenn Espina 5
Д
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It's been six years. Are you rich yet?
It's 2022 and no other material on internet shared this amount of valuable knowledge! I'm excited to learn more from the 26 lectures, Thanks a lot MIT. You're gold!
Hello MIT!
I'm from my country Lesotho as for now, and I really enjoy learning from this channel
And I would like to say hello to my profs , all of them are amazing!
This is my favourite chanel ever since I was searching for something to learn about the markets complexity
I love you MIT with our supper highly experienced professionals
Thanks for your commitment
From
Nthethe Shadrack M
I am from France and I am hooked to this channel since my discovery.
Wow these lectures are actually I have been waiting for..Thank you so much MIT.
Thanks for watching and commenting don't forget to hit the subscribe button for more guidance on cryptocurrency, stocks forex and gold contact us on WhatsApp • + (1)(7)(7)(2)(2)(4)(2)(7)(1)(1)(3)
Thanks mit for giving us quality and deep knowledge about finance
Education is the backbone of every economy
+Ezgi Atasoy, I'm not a Muslim, I oppose Islam/Christianity/Buddhism/Hinduism(all religion or any religion), but the difference between you and me is that I don't attack a person who has made a neutral comment and nothing hateful. At the same time I respect this individual's choice to follow his/her religion of choosing. How do you know if this person is for or against education while his/her religion may or may not permit it?
The same way that you seem to "know" that your behavior is morally superior. Same logical argumentation. Same bullsh*t.
For your kind information, first word of The Holy Quran is "READ"
Maia Atasoy
Islam calls us to seek knowledge. The Messenger (peace and blessings of Allaah be upon him) made seeking knowledge an obligation upon every Muslim, and he explained that the superiority of the one who has knowledge over the one who merely worships is like the superiority of the moon over every other heavenly body. He said that the scholars are the heirs of the Prophets and that the Prophets did not leave behind dinars and dirhams (i.e., money), rather their inheritance was knowledge, so whoever acquires it has gained a great share. And he (peace and blessings of Allaah be upon him) said that seeking knowledge is a way to Paradise. He (peace and blessings of Allaah be upon him) said: “Whoever follows a path in the pursuit of knowledge, Allaah will make a path to Paradise easy for him.” (Narrated by al-Bukhaari, Kitaab al-‘Ilm, 10)
More info:
islamqa.info/en/10471
And
sites.ualberta.ca/~msa/pdf/hadith_knowledge.pdf
Or a way to destroy and brainwash a society
I'm truly appreciative of open course ware, it really makes a difference who presents educational materials. The difference being the knowledge and another being the enjoyment.
Wow am diving in love with this
i just started watching and and I'm grateful for this wonderful opportunity.
Thanks for watching and commenting don't forget to hit the subscribe button for more guidance on cryptocurrency, stocks forex and gold contact us on WhatsApp • + (1)(7)(7)(2)(2)(4)(2)(7)(1)(1)(3)
This Professor really knows how to teach, great pedagogy
Excellent video...well explained and very simple to follow and learn. Thank you.
Wow - free education. The advent of youtube is amazing
This course is as long as his tie. Thank you MIT!
What a lovely and humble proffesor! So likeable and engaging❤️
I enjoyed the lecture. Very informative and interesting. I only completed community college with an AAS Business administration but I am always improving myself independently. Thank you for open course.
I am earning more this year because I have been investing while working at the same time. I invested through PRISCILLA DEARMIN-TURNER, same woman that an anchor kept mentioning on CNBC, and made multiple of my start up capital within three months . She lives here in the USA and she is licensed
There might be economic turmoil but there is no doubt that this is still the best time to invest.
I do think the stock market is going to all time highs again (spy 500-550) but most likely not until we go back down to retest the lows. The April run will likely stall short of all time highs around 455-460 on major resistance, before tanking back down to 420's in May. then I can see a run back up to 500+ through the summer
knowing the longer term trend.. should make it easier for shorter term trading
@@davidkayser5430 yh, that is why it is very important to choose stocks you will invest in. Invest wisely either for short term or long term.
@@davidkayser5430 2022 is going to be the best year for all investors. soon the market will sky rock.. i invested
@@ruzunasaben7658 I still don't understand the market. we buy then we sell then we buy.. should we sell now? am new to the market. Isn't it cheaper to just hold and accumulate?pls, do you work with an expert? if yes, how do i reach the expert that assists you?
I find it amazing not only are they teaching but they are teaching in a foreign language. That's incredible
I appreciate having 2 different camera angles👌🏼
I love to watch these while driving, it refreshes my brain
thank you for your knowledge and giving this knowledge thru cost free channels
Imagine going to a prestigious school and getting a lecture like this. Plain and simple as it should be with those presentation slides
So simple I fell asleep a few times
Please, check the modeling videos and go to delate this shit
Bro I haven’t even watched this yet and I know this guy is good
Cant thanks enough this channel team and lecturer.
He's a wonderful professor! Thank you MIT!
czcams.com/video/w_YaUQJAQSU/video.html.
43yrs old here; laid off food server. need something to learn and do in life. maybe this video will help. i’m certain it won’t hurt.
The main goal is education and expansion of thinking 👌
Sorry about your job. There are better days ahead, we move! 💪
Keep going!
An insightful introduction to essential financial terms and concepts, setting the stage for a comprehensive exploration of finance. Looking forward to delving deeper into quantitative analysis and market dynamics.
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.
Posting these lectures is an amazing learning opportunity for people online.
Just a reminder, if any one is a newbie like me who haven't touch continuous stochastic process before, please go through 2-5, 17, 18 and 21 before taking others. Otherwise pretty much can't understand some of the guest lectures.
where can i find these?
Sameer Lal ocw.mit.edu/courses/mathematics/18-s096-topics-in-mathematics-with-applications-in-finance-fall-2013/video-lectures/
Thank you!
Best analysis and concept.
Thanks Dr. Jake xia.
Thanks very much, I’m from Brazil and the country is lacking in this type of content, I’m improving my English to better understand these class, but the access to this class is of great help.
Voce ta falando merda cara
@@walterpayton2120 Como assim
Brenner muito bem! Eu sou Brasileira aqui nos Estados Unidos. Se precisa ajuda me avisa
This is GOLD information!
I'm so glad that they did this and I'm angry I'm only finding it now! But better sooner than later.
I can't afford to go to MIT, but finance is something I'm passionate about and I dig everything I can from the internet to absorb.
Thank you MIT
Same
May i ask why you are passionate about finance?
@@itsjustyana6323
@JustLou 2
Ofcourse you can. I'm passionate about it because to me it seems like learning the rules for a game I didn't know I'm playing, if it makes sense.
It was an eye opening experience for me when I first started learning about finance and the economics of the world.
I'm still currently learning more and more on my own.
I'm not rich but also not struggling anymore.
I do mostly stock market, long term. And I am more financially aware of my spending now as well.
Great class and great professor!
Thanks so much MIT for making this quality education available for everyone
Thank you Open Courseware.....so profoundly enlightening. MIT....THANKSSSSS a zillion
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If only my professors were at least 50% of this quality and had at least 20% of the teaching method presented here.
teaching is incredibly hard. cut 'em some slack unless you can tell they are phoning it in.
While I do agree with teaching being rather difficult, however, I would think that after 18 years of school (2 universities) I would be able to tell the difference in quality, but then again..
...And you were 41.762% of the quality of MIT students😅
@@PzZulqar I don't particularly get what you are saying, however, I wish I could at least attend MIT or have a chance at it. :))
You would have the chance if you paid for an education at an MIT level school
Great lecturer and good explanation
BEST WISHES FOR YOUR SUCCESS AND HAPPINESS 💗
thank you so much MIT .very helpful
My salutes to MIT and it's professors remotely from India via CZcams. God bless more Innovation to humanity
Hi bro
From India
My class is off due to corona. So i am here trying to utilise my time. Grateful 😇
This is a absolutely sweet video
thank you for posting these videos and making learning free!!
Thank you so much MIT
Thanks for watching and commenting don't forget to hit the subscribe button for more guidance on cryptocurrency, stocks forex and gold contact us on WhatsApp • + (1)(7)(7)(2)(2)(4)(2)(7)(1)(1)(3)
Melihat upaya kalian, keliatan sekali kalian yg butuh aku dan kimi,
Thank you MIT for the lecture.
I enjoyed this video mind blowing explanation thank you sir
Spectacular and timely this video that you share with us, is a very efficient and high quality information that allows to reach more effective and safe results in a short time; great job!
27:00 hedging is offsetting your risk when the asset is at a good price
good strategy! You have made a lot of good videos. Adore! I'm a big fan.
Thank you guys for this video! it was very very impressive and intresting!!!!!
Spent 1 hour with PLEASURE one more time thank you guys!
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thank mit leaned a great deal
Too bad this video is too short... This man has good insight
Yes, your information is valuable.
God Bless you all Thanks a lot...
Awesome course whereby professional terms are explained in a simplifed way.
I dozed off for, say, 3 hours whilst sitting down. This is the video I find myself watching after the 3 hour nap, thank you CZcams.
Financial transactions shall be through Crossed A/c Payee Check or through Bank against Adhaar Card identification
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"like i said, I'm good with calculation"
YES!
This made my day!
lmaoooooo
@Rob C saggy hairy titties
fkn LOL
Excellent analysis and concepts
Thank you mit
He really mentioned most of what I learned in 1 year of studying trading
Ah yes, I graduated with a degree from WSBU and now a professional robinhood options trader
How do you like it?
hod strong
Haha me too! ( just not a BD)
@@vluri258 He was kidding.
I studied my self without going to university by actually working in the FX industry.
This was a good refresher.
Informative content For Finance and I'm thankful to MIT
Thank you for this.
So thankful for these videos
Thank you Jake Xia!
Thanks to all of you at MIT for making this availble for people who can't afford.
Check out Financial Nutrition for more finance content!
So amazing that we have this kind of knowledge available at our fingertips.
Capitalism providing top free content in the most effective and accessible way. Gotta love it.
crypto is disturbing the stock market
@@MaghoxFr To bluntly state that "capitalism" is the reason we have access to stream such quality educational content at such a *low cost from MIT is much to black & white from my experience. There are SO MANY VARIABLES you have to look at & a key one that would factor in could work in favor of pure altruism. I find the pendulum always finds its balance though.
*by either watching commercials/letting them mine your data/paying $11.99 per month to CZcams +/&/or pay directly to content creators that do the hard work for us/patreon/etc
This isn't the Wok shop? I was looking for fried rice recipes
@@MaghoxFr Imagine complaining about capitalism while you're on your mac
I'm really glad that such lectures exist online
@Laura Brooks un related comment
Information is inherently free. It is the one thing you can reproduce, in mass quantities, give away for free, and you still have it too...
Information breaks the Zero-sum game of classic economics.
This video has relentless ended up in my recommended page, I never click it, and never intend to watch it. It amazes me how often it pops up though
I am here because soon I have to take a finance class for health care administration . When I took it for marketing I barely passed . I want to learn how to understand this subject and be able to pass it next year
Every time the Morgan Stanley commercial is on I think of Xia.
i think the value of this course can best be described by personall anecdote. if i could go back in time and give myself a sitcky note that said "learn how to buy and sell options" i would trade my entire post 6th grade education for that knowledge.
Great explanation! Thank you so much😎
thanks for sharing this material for us!!!! its really useful
Thanks for showing the class size. Certainly not UC Berkely Econ 1 with something like 700 students.
Very Helpful to see if I want to go into this. Thank you.
Excellent analysis and excellent concepts
This is really great. Thank you for sharing this valuable information.
Just what I was looking for.
great vid with simple explanation