Category Archives: The Wilmott Magazine

My published (or soon to be published) column pieces in The Wilmott Magazine

Risk – Wiley FinCAD Webinar

This post is an edited version of my responses in a Webinar panel-discussion organized by Wiley-Finance and FinCAD. The freely available Webcast is linked in the post, and contains responses from the other participants — Paul Wilmott and Espen Huag. An expanded version of this post may later appear as an article in the Wilmott Magazine.

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Risk: Interpretation, Innovation and Implementation

An invite to a Webinar organized by FinCAD and Wiley Global Finance, featuring Paul Wilmott, Epsen Haug and yours faithfully… Continue reading

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Physics vs. Finance

The last post in this series of Love of Math looks at how math gets used in physics and finance. Or, more precisely, how one has to be careful about the assumptions in modeling stuff, and the pitfalls of (the lack of) error propagation.

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Math and Patterns

Most kids love patterns. Math is just patterns. So is life. Math, therefore, is merely a formal way of describing life, or at least the patterns we encounter in life. So, where is the difficulty in loving maths? Here is the second post in this series.

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Love of Math

This is another short series of posts on love of math — that questionable gift. Recently, I was asked to think about how to make kids love math. Here are my thoughts, as the first of three posts. This article will be published in Wilmott Magazine. Continue reading

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In Our Defense

Here is an article defending (to some extent) the insane salary expectations of the elite bankers and traders. And quants. This piece will appear in my regular column in Wilmott Magazine. Continue reading

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Money — Love it or Hate it

This concluding part of the philosophy of money (to appear as a column in the May issue of the Wilmott Magazine) shares my private disappointment that whatever I wrote up may not have been as original as I expected it to be. But the concept of money has been around for a long time now, so I should not dwell on it too much. Continue reading

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Money — Why do We Crave it?

Having looked at the how of money in the last post, here is the why of money in this third post in the my mini-series. Why do we want it so bad? Continue reading

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The Ultra Rich

This second post of the mini series based on my upcoming column in the Wilmott Magazine looks at how people make money in a scalable fashion. It was posted earlier in this blog. Continue reading

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Philosophy of Money

Here is another mini series of posts based on an upcoming column of mine in the Wilmott Magazine to appear in their May issue. I have posted similar ideas here before, but this series will put them together, hopefully as a cohesive whole. This first post of the series looks at the unphysical nature of money. Continue reading

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Modeling the Models

Mathematical finance is built on a couple of assumptions. The most fundamental of them is the one on market efficiency. Is it wise to trust this assumption? Are there limits to it? Are we operating at the right scale to ignore the shakiness of the market efficiency assumption? Continue reading

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Group Dynamics

People tend to follow the money gradient. When a particular field is lucrative, more people tend to end up there. During the IT boom time of the previous decade, most of the talent flowed in there. Finance also has been a not-so-strange attractor for academics. Here is a look at the culture shock associated. Another excerpt from my upcoming column in the Wilmott Magazine. Continue reading

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Philosophy of Money

This short piece is part of a column coming up in the Wilmott Magazine. Although summarily treated as a sort of curiosity, this idea may indeed blossom into a full-length book. For that reason, you will find more posts on related topics soon. For instance, why is it that hard work does not always equate to enhanced bank balance? Why do celebrities and entrepreneurs make so much more than normal employees? Want to know? Stay tuned… Continue reading

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Slippery Slopes

The last post in this series, this one exposes the extreme cases both in allowing and in denying bonuses, and their implications. Both the options imply our acceptance of certain economic idea. And, as with most things in life, it is not quite clear which is right, once you think long enough about it. A happy and stable middle ground is what we should seek and find. Continue reading

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Profit Sharing

If you generate profit, don’t you deserve a share of it? Profit generation and increasing shareholder value — these are the hallmarks of top talent in our capitalistic world view now. What is good for the shareholder is certainly good for the talent as well. Continue reading

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Talent Retention

Another common argument is that bonuses are necessary to retail the so-called “talent.” Are they? Continue reading

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Talent and Intelligence

If hard work does not entitle us to fat bonuses, perhaps our “talent” does? This is the third in the series of posts based on an upcoming column of mine in the Wilmott Magazine. Continue reading

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Hard Work

The second in the series of posts based on an upcoming column of mine in the Wilmott Magazine, here is the common argument about hard work and the perceived entitlements. Continue reading

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Bonus Plans of Mice and Men

This is another series of posts based on an upcoming column of mine in the Wilmott Magazine. In this series, I will examine at the arguments for and against huge bonuses and golden parachutes. The first in the series, this post merely sets the stage for the next half a dozen. The starting point of this series is the public resignation letter by Jake DeSantis, ex-EVP at AIG, and his reasons for believing in the fairness of the huge bonus packages. And my arguments against them, with the personal suspicion that my views are perhaps more a case of sour grapes than of moral high horse.

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A New Kind of Binomial Tree

How does a binomial tree pricing model look in a functional language? The last excerpt from my next column for the Wilmott Magazine (May 2009 iessu), this post may be a bit technical for those who are not practitioners in the field of quantitative finance. Continue reading

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