I am a big fan of trees. It is a very nice way to see how financial pricing works, for derivatives. An with a matrix-based language (R for instance), it is extremely simple to compute almost everything. Even multiple assets options. Let us see how ... [Read more...]

For those of you used to reading about international relations, I apologize for the following brief foray into American politics. It appears that the American Enterprise Institute and David Frum have decided to (abruptly) part ways. Before David left, however, he and his team of interns provided some interesting statistical ... [Read more...]