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Rocket clouds
? by Mind Map: ?

1. numerical methods

1.1. finite difference methods

1.1.1. ong factor

1.1.1.1. crank-nicolson

1.1.1.2. explicit method

1.1.2. two-factor

1.1.2.1. explicit

1.1.2.2. implicit

1.2. binomial model

1.2.1. low dimensions

1.3. monte carlo simulations

1.3.1. high dimensions

2. speculation

3. hedging

3.1. discrete hedging

3.1.1. pocket liquidity

3.2. delta hedging

3.3. static hedging

3.4. binomial market

3.4.1. complete market

3.4.1.1. delta

3.5. no delta hedging

3.5.1. incomplete market

3.5.1.1. energy derivatives

4. interest rates

4.1. stochastic interest rates

4.1.1. short rate

4.1.2. long rate

4.1.3. bonds

4.1.4. fixed income products

4.1.4.1. formed rates

4.1.4.1.1. implied

5. dividends

5.1. dividend yields

5.2. stochastic dividends

5.3. constant absolute dividends

6. credit risk

6.1. positive recovery

6.2. stochastic risk of default

6.3. credit derivatives

6.4. poisson process

6.4.1. crash metrics

6.4.1.1. credit metrics

6.4.1.1.1. VAR

7. volatility

7.1. implied volatility

7.2. volatility smiles & surfaces

7.3. stochastic volatility

8. risk framework

8.1. risk metrics

8.1.1. conveinence yield

8.1.2. known income

8.1.3. cost of carry

8.1.4. value at risk

8.2. utility

8.2.1. asset allocation in continuous time

8.3. certainty equivalent wealth

8.3.1. bellman equations

8.4. risk aversion

9. products

9.1. fixed income

9.2. options

9.3. bonds

9.4. futures

9.5. spot

9.6. equities

9.7. commodities

9.8. derivatives

10. market principals

10.1. random walk

10.1.1. dump diffusion

10.1.1.1. poisson process

10.1.1.2. crash modeling

10.1.2. fat tails

10.1.2.1. levy process

10.1.3. Arouse in the other person an eager want.

10.2. no arbitrage

10.2.1. efficient market

10.2.1.1. markov processes

10.2.1.2. martingales