Stock Prices as Stochastic Processes

We discuss the model of stock prices as stochastic processes. This will allow us to model portfolios of stocks, bonds and options.
#mikedabkowski, #mikethemathematician, #profdabkowski, #mathfinance

[@JDavisGuitar]

I used to hate math until I started watching these videos. Such passion and energy in the teaching. wish this information was available 20 years ago when I was in college. Keep up the great work.

[@kadar22]

Thank you this was very straightforward and explains it perfectly. You made my life easier 😊!

[@mikethemathematician]

@kadar22 I am glad that it helped!

[@cyclestudiesBTC]

Man, you deserve more subscribers!!!

[@mikethemathematician]

Thank you!

[@napoleonconquistador8430]

Greta video, but most important is The explanation. So easy to understand.

[@mikethemathematician]

Thanks!

[@neocoretec]

Do not wear headphones!

[@2k10clarky]

I was flipping furniture trying to find the 🐁

[@MOTV583]

Should have read the comments first...

[@andreynd]

Thx, Mike, both content and the way you present it are awesome! Pls create a video where you combine this with Markov models if you haven't already.

[@mikethemathematician]

I will make a point to make some videos on Markov models and Markov chains in the future! Hopefully next week!

[@beastx4780]

great vid, easy to understand

[@mikethemathematician]

Thanks!

[@Leo-zj2qp]

But how do you determine the probability of bull average and bear?

[@MichaelNolan-x3u]

Looking for this answer as well.

[@MrGolusinghania]

great video, but a question here, can you also highligh a scenario where i can utilise this?
p.s. this is not a rhetorical question, i’m genuinely asking if this can be implemented in futures market or in general what are it’s applications?

[@mikethemathematician]

The idea presented here is a first step to understanding the models of stocks as discrete state processes. You can generalize this to infinite state processes too which is a useful idea in practice.

[@andread9899]

Yes... You do this 1 year elementary calculus and After that you lose money

[@Pjw-yl1bg]

how do you write it inverted?

[@mikethemathematician]

The camera mirrors my writing, so I am writing as I normally would on the other side of the glass!

[@daymaker_trading]

Amazing 😂

[@earlnyk]

Hey I sent you an email recently. Wanted to pick your brain on something similar to this

[@AKANKSHASHREE-hy7nc]

Well thats a new pov

[@mikethemathematician]

Hope that you enjoyed a different perspective!

[@GavinWhitford]

No cap very beautiful

[@hyuming2577]

interesting. hmm

[@itsmalay]

Get me my collage fees please 🥴 I cant go to collage

[@novicepsa10hunter77]

Amazing ability to write backwards.

[@mikethemathematician]

Thanks @novicepsa10hunter77, but I write as I typically do and the camera mirrors me!

[@novicepsa10hunter77]

@@mikethemathematicianlol I know. It was a joke 😂👍

[@FF-ms6wq]

Writing stuff like “Bull = \Omega_1” is absolute garbage. Are you trying to intentionally confuse people? Events are never ever written using the symbol \Omega, which is exclusively used to denote the universe of the probability space. You are introducing ambiguity, confusion, and everything that you shouldn’t be doing as a teacher. As a professor in mathematics I’d recommend everyone NOT to watch this. And by the way, also what you said about a discrete time process being called a ‘time series’ is not generally adopted terminology; one refers to such also as (stochastic) processes.

[@scatrat7]

Subbed just for the backwards writing 🫣👍

[@mikethemathematician]

@scatrat7 It took me such as long time to master!