Wait, so if tomorrow we discover the "ideal" model to calculate derivatives and risk.
The entire Derivatives market will crumble?
Yeah, no one is going to "discover" it, and even if they did, they wont survive long enough to publish it.
😂😂
@Lucas_Wind Says:
If Veritasium was a stock, I'd buy and HODL for life.
@JT-px2ev Says:
Then the great taking by David Rodger’s Webb
@tf2fan919 Says:
Funnily enough the South Sea Company was not in fact booming and was actually a play by the british government to rid itself of its crippling debt. They are still paying the debt caused by this fiasco today last I checked.
@GunslingerAlGilead Says:
Great explanation, thanks! I did masters in a credible business school and hold CFA Charter, still it’s so refreshing to watch such videos
@corners1733 Says:
ok
@imakevidsable Says:
The equation provides the best price for what? What the option price should be? If so then why would others bet differently?
@StoicGift-yd8qx Says:
If you apply Stoicism, the amount of money you make will be exponential, your life will become easier.
@ExpatZ266 Says:
That equation is a scam when applied to financials, notice how it causes massive bubbles then market collapses when implemented? If you haven't noticed that you haven't been paying attention.
@numbersix8919 Says:
In the USSR, this would all just be criminal behavior.
@Owwee_immaB Says:
This all sounds really familiar. Am I the only one
@BryieURuncal2023 Says:
That is a crime and you pat your self on the back until the cops pick you up for insider trading designed as math.
@SPAMMAN123456789 Says:
so the trillion dollar strategy is get a phd in physics, then go to finance
@rachidvanheyningen Says:
Damn.. “Business was booming” kinda hurt 😂😂
@jennifer7685 Says:
It’s all imaginary numbers of imaginary money for companies that lie about where their money comes from to the point that people can’t tell if going bankrupt 6 times is a sign of a brilliant business man.
@FadiAkil Says:
1:40 Based!🥱
@KristenOldham32 Says:
Billionaire whitewashing
@estudarelegal8473 Says:
Wow! Great work!
@josephcarbone5379 Says:
Thank-you
@sarbagyakayastha8816 Says:
I think There is labeling mistake at 5:18 figure stock price at exercise and strike price have been switched
@ceeeeee Says:
The background of the Chinese guy makes him untrustable. He shouldn't use that. Just the plain background was better
P.S. maybe the lighting and even the quality of the camera were the factors
@wetwingnut Says:
It's amazing how obvious succeful investment strategies are in hindsight, but how elusive they are in the present.
I think that the confirmation bias is strong in this video.
@einarjuel Says:
Finance tries so hard
@thomasvandervliet9387 Says:
Fortune's formula is an amazing book about gambling, the mob, information theory and finance all in one. Many people who like this video will also like the book.
"Theres more money riding on the things based on the thing, than the thing itself? How does that make any sense?" Well, see the thing is we're sucking up the environment around our mega human anthill to expand it and feed it; and we need made up concepts of value to justify the annihilation of the planet.
@carrickrichards2457 Says:
The bets-on-the-bets-on-the-bets is where the scale and leverage of deriviatives seems to have come from? And leverage scales risk. It is not simply 'insurance' (which can mean stability) but in 2008 terms that means exagerated instability.
@olfi500 Says:
26:42 *not a real Nobel Prize
@ouroboros1171 Says:
You should interview Cem Karsan
@TheSaxRunner05 Says:
Hmm, this all happened about the time wealth inequality exploded as well. And since they have billions they can pay to keep it this way.
@FernandoTakeshiSato Says:
derivatives are nuts
@jessicalee333 Says:
26:43 Major asterisk on saying they were awarded the "Nobel Prize in Economics" because of the controversy about the prize's existence, especially from Nobel's own family who point out that Nobel never created nor intended to create, nor would he have approved of a prize for economics. It's an add-on "Nobel Memorial Prize" created by a bank.
@vonBottorff Says:
AI will sweep all of this crap away. AI will simply change everything to raw, direct logistics -- and money (therefore everything "financial") will simply cease to exist. Can't wait. How will it start? So what do people run on? Paychecks. What do computers run on (power- and info-wise)? Electrons. It will become increasingly obvious that supply chains with flowing electrons unimpeded by "paywalls", i.e., without humans, will be the way to go, ironically initially, because it's cheaper. Until every function of money will be replaced by the AI-managed logistics network.
@taffareldelimaoliveira Says:
Just look at the VIX in 2008, 2020 and 2022.
@user-nn4ov1yp8u Says:
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment,😃
@RVeda-vh5on Says:
Something like incompleteness or undecidability may be acting here. Not everything can be computed although a continual cat and mouse game May ensue.
@piotrmazgaj Says:
Does anyone else wonder why the oil barrels have the radiation hazard symbol? AI generated? Make no sense. Great video though!
@someperson9 Says:
This video will effect the stock market
@abd_ab3 Says:
3:30 Number 37 easter egg
@merryme9766 Says:
Periodic Table of Contents....What are add ones and there should be no 2 @like....🎉😢😮😅😊
@yoface2537 Says:
I thought I'd never want to see another partial derivative again after several physics graduate couldn't explain it but you know what, I'll give them another chance
@boomcan Says:
Harmonization synchronization in normalization elevation documentation validation conversation demonstration iteration after iteration
@scottgarland1071 Says:
Even Newton dealt with Naked Shorts?
@Mr.Anglo1095 Says:
Can we bend light enough to make it go in a circles so it’s still just one way? I’m just curious why that’s not possible.
@AaronLloyd-Jones Says:
The Black and Scholes equation is wrong: The Black and Scholes (risk-neutral) premium is the first moment of the option expiry for an asset that has all risk and no market return (the risk-neutral measure), that which has been debased of market return (by holding portfolio returns fixed flat at r). This idiotic asset (the risk-neutral measure) is stochastically dominated by bonds in that bonds have the same return (r) but without the risk whilst it is stochastically dominated by stocks since stocks earn market return for the equivalent amount of risk:
bonds have LOWER RISK for the SAME RETURN as the debased market asset (the risk-neutral measure)
whilst
stocks have HIGHER RETURN for the SAME RISK as the debased market asset (the risk-neutral measure)
Either way, the 'risk-neutral measure' is totally idiotic and stochastically dominated by all non-redundant asset classes. It is not deep and it is not abstract. All it is is the market asset without return (which is then used to price the derivative and so is wrong and inaccurate).
If a trader wants an option, then he must not take an offsetting position that nullifies the option position. There is nothing risk-neutral about that. An option premium must have a mean mu in the drift term, otherwise it is wrong... wrong for derivatives and wrong for efficient and non-communist finance.
nb: I had to say 'no risk' when I sat several of the courses in undergraduate (almost two decades ago). It was clear as day to me then that it was inaccurate (and proved by me definitively now more than one decade ago).
@zelmoziggy Says:
Physicists and mathematicians came up with the financial instruments that led to the Great Recession.
@stupidbitcoin Says:
The market used the Rubik's Cube algo against you.
@TheGabeBondocCoverer Says:
"Newton invested in slaves" nobody bats an eye lol
@SergeyEvseev-rl6il Says:
This is my favourite youtube channel thank you for the teacing. I like you and love you In this strategy, we close the trade no matter what after the 1min candle ends?
@SamYarney-xl7lk Says:
Loved the vid but felt like LTCM should’ve been brought up.
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