Dear Taha,
I have considerable experience in supervising undergraduate interns
as well as giving talks for undergraduate students on the applications to
finance of such a fundamental notion from modern theoretical physics
as the notion of symmetry.
I introduced the beliefs-preferences gauge symmetry in 1995 and
the foreign exchange option symmetry (with John F. Price) in 1996. It is
this foreign exchange option symmetry in the simple case of European options
in a two-currency market that I would like to suggest you to consider for
your presentation.
In this particular case the symmetry can be formalized, loosely speaking, as
change of basis in a linear vector space, so that the standard linear
algebra course and some background in calculus will suffice. (In the general
case of a multiple currency market the symmetry is formalized in terms of
differential geometry on graphs, that is in terms of vector lattice bundles
on graphs and connections on these bundles so that some background in graph
theory and differential geometry would be desirable.) Moreover, the
material can be illustrated with the help of various simple graphs.
At the same time this simple case of foreign exchange symmetry is
sophisticated enough to demonstrate the power of the application of symmetry
to finance.
If you are interested I will be happy to provide you with titles of my
books, articles and preprints that I have authored and/or co-authored on
this topic.
Sincerely yours,
Valery Kholodnyi
Research and Analytics Group
Texas Utilities Company
E-mail: [log in to unmask]
--- Taha Rangwala <[log in to unmask]> wrote: > Hi,
> I am a senior undergrad majoring in finance. I have
> an upcoming
> presentation - for a class in general physics
> (introductory) - about the
> application of physics in economics. I have read
> numerous books and papers
> on the web talking abt the pareto-levy and the
> gaussian distribution, and
> i must admit most of i it dont understand. Even if I
> give it my best shot,
> im sure my audience wont understand my presentation
> (as they are mostly
> freshman undergrads). So i was hoping if someone
> could help me by
> providing me a clearer (and riduulosly simpler)
> picture of how physics has
> a played a role in economics.
>
> Any help in this matter is greatly appreciated
>
> Taha Rangwala
>
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