In the world of finance, it is not uncommon to hear about stochastic calculus or stochastic processes. While the name may sound daunting, the concept and its application in finance is actually relatively straightforward. A stochastic process, sometimes referred to as a random process, is simply a group (or “system”) of random variables and their

# Quantitative Finance

## From PhD in Mathematics to Stock Trading Floors

The world of financial markets has opened many opportunities for a variety of professionals and people with different qualifications. One such qualification that has found tremendous scope is a PhD in Mathematics. Even though math has always fascinated people, a few years back it was difficult for people to put their knowledge of statistics and

## How to Arbitrage Volatility

This video derives from the chapter 12 of the Book Quantitative Finance by Paul WIlmott. The video explains how to make money by trading on the differences between actual and implied volatility. One choice you have to make is whether to hedge using implied or actual volatility; they have different consequences in final profits and