Difference between revisions of "TADM2E 6.23"

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(Created page with "The problem reduces to Floyd - Warshall algorithm if you take logs of all currency-exchange rates, as if a * b = c then ln(a) + ln(b) = ln(c). In computational finance people...")
 
(Replaced content with "Good, watch EthanGamer")
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The problem reduces to Floyd - Warshall algorithm if you take logs of all currency-exchange rates, as if a * b = c then ln(a) + ln(b) = ln(c).
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Good, watch EthanGamer
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In computational finance people often use logarithms of prices instead of prices themselves, as it gives faster calculations and makes it easy to apply log-normal distribution instead of normal distribution (log-normal distribution is more appropriate for asset prices).
 

Revision as of 01:42, 14 July 2020

Good, watch EthanGamer

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