Today I have attended a talk titled - “Interest Rate Models, past present and future”. This is the first ever presentation that I have seen till date that had only equations from Slide 1 till the end. What all I have known about stochastics seemed absolutely nothing , i mean nothing, as compared to what was being done in the real world.The complexity of pricing and calibration is mind boggling. The speaker ripped apart all the possible interest rate models till date and I was clueless to understand most of his arguments.

In Nassim Taleb’s words: “Being an executive does not require very developed frontal lobes, but rather a combination of charisma, a capacity to sustain boredom, and the ability to shallowly perform on harrying schedules. Add to these tasks , the “duty” of attending opera performances( team outings) " Wow!!! this is the sarcasm put forth in the most eloquent manner..I think he has seen quite a bit of management crap in his trading life.

An article about “optimal stopping time” , in a completely different context. Link : Mathematics, marriage and finding somewhere to eat

Monte Carlo simulation is one of the methods of pricing financial instruments. Why is it called Monte Carlo? Here is why ? The etymology of the name is from the city of Monte Carlo of the principality of Monaco, located in southern France. Gambling has long been legal there , and the name is a tribute to Monaco’s celebration of the laws of chance through the operation of elegant gambling casinos

Idealism is what precedes experience; cynicism is what follows. David T. Wolf