Veritasium does a lot of great science videos. This one is about Derivatives and Efficient Markets.
https://www.youtube.com/watch?v=A5w-dEgIU1M
Below is Gemini AI's summary about the video.
This video explores the world of derivatives, financial instruments used to hedge against risk or to speculate on future price movements. The video highlights the work of mathematicians and physicists who have used their expertise to develop new models for pricing derivatives, and how these models have transformed the financial industry.
One of the key figures discussed in the video is Louis Bachelier, a mathematician who in 1900 developed the first mathematical model for pricing options. Bachelier's work laid the foundation for the Black-Scholes model, which is now the standard model for pricing options. The Black-Scholes model was developed by Fischer Black and Myron Scholes in the 1970s, and it has since been awarded the Nobel Prize in Economics.
The video also discusses the work of Jim Simons, a mathematician who founded the hedge fund Renaissance Technologies. Renaissance Technologies is one of the most successful hedge funds in history, and it has used complex mathematical models to generate high returns for its investors.
The video concludes by discussing the impact of derivatives on the financial industry. Derivatives have made it possible to hedge against a wide range of risks, and they have also created new opportunities for speculation. However, the use of derivatives has also been blamed for contributing to the financial crisis of 2008.
Overall, this video provides a fascinating look at the world of derivatives and the people who have used mathematics to make them work. It is a complex topic, but the video does a good job of making it accessible to a general audience.
https://www.youtube.com/watch?v=A5w-dEgIU1M
Below is Gemini AI's summary about the video.
This video explores the world of derivatives, financial instruments used to hedge against risk or to speculate on future price movements. The video highlights the work of mathematicians and physicists who have used their expertise to develop new models for pricing derivatives, and how these models have transformed the financial industry.
One of the key figures discussed in the video is Louis Bachelier, a mathematician who in 1900 developed the first mathematical model for pricing options. Bachelier's work laid the foundation for the Black-Scholes model, which is now the standard model for pricing options. The Black-Scholes model was developed by Fischer Black and Myron Scholes in the 1970s, and it has since been awarded the Nobel Prize in Economics.
The video also discusses the work of Jim Simons, a mathematician who founded the hedge fund Renaissance Technologies. Renaissance Technologies is one of the most successful hedge funds in history, and it has used complex mathematical models to generate high returns for its investors.
The video concludes by discussing the impact of derivatives on the financial industry. Derivatives have made it possible to hedge against a wide range of risks, and they have also created new opportunities for speculation. However, the use of derivatives has also been blamed for contributing to the financial crisis of 2008.
Overall, this video provides a fascinating look at the world of derivatives and the people who have used mathematics to make them work. It is a complex topic, but the video does a good job of making it accessible to a general audience.
Statistics: Posted by LazyNihilist — Wed Feb 28, 2024 8:28 pm — Replies 2 — Views 218
