Columbia Mathematics of Finance Practitioners Seminar, Spring 2004

Room 207 Mathematics Building, Tuesday, Thursday 7:40-9:00 p.m.

 

http://www.math.columbia.edu/~smirnov/PractSeminar04.html

 

Speakers for the dates not shown below will be announced during the semester in class and on this website.

 

January 20, Tuesday,          Ali Hirsa (Morgan Stanley) Arbitrage between statistical and risk neutral distributions

January 22, Thursday,         M.Smirnov, Discussion of Class Projects

January 27, Tuesday,          Ali Hirsa (Morgan Stanley)

January 20, Tuesday,          Ali Hirsa (Morgan Stanley) Arbitrage between statistical and risk neutral distributions

January 29, Thursday,          M.Smirnov, Methods of Risk Management

February 3, Tuesday,          Ali Hirsa (Morgan Stanley)

January 20, Tuesday,          Ali Hirsa (Morgan Stanley) Arbitrage between statistical and risk neutral distributions

February 5, Thursday,         Ali Hirsa (Morgan Stanley) TBA

February 10, Tuesday,        Ali Hirsa (Morgan Stanley) TBA

February 12, Thursday,       Darren Clipston (Drake Management) Methods and Techniques of Convertible

                                        Arbitrage

 

February 17, Tuesday,        Albert Shiryayev, (Moscow State University and Steklov Institute)

                The Problems Of The Quickest And Most Accurate Detection In The Technical Analysis Of The Financial Data

 

February 19, Thursday,       Albert Shiryayev, The best stopping of Brownian motion without anticipation (as

close as possible to its ultimate maximum).

 

February 24, Tuesday,        Albert Shiryayev, Poisson and Levy models in the quickest detection problems

Mathematization of the Japanese RENKO and KAGI charting techniques (S.Pastukhov's results)

 

February 25, Wednesday,  MATHEMATICS COLLOQUIUM 4.15PM-5.30PM, Room 520 Math Tea at 3:45 in Math 507

Albert Shiryaev, Mathematics of A.N.Kolmogorov

 

February 26, Thursday, Albert Shiryayev , Some recent results on Brownian motion with

Drift. Extension of the Levy characterization theorem. On the probability characteristics of values of downfalls

(drawdown) of prices described by a Brownian motion and a Brownian motion with drift

 

February 27, Friday, 11.00AM - 12:15PM PROBABILITY SEMINAR Room 520 Mathematics Building

Tea and Coffee will be served before the seminar at 10:30AM, Room 621 Math

Albert  Shiryaev, On Some Striking Properties Of Brownian Motion:

An extension of P.Levy distributional properties to the case of a Brownian motion with drift and Ito's processes. Probability characteristics of downfalls in a Brownian motion and Brownian motion with drift. Stochastic integral representation of some partial maximum functionals for Brownian motion. The limit behavior of the horizontal-vertical random walk (an extension of the Donsker—Prokhorov invariance principle). An analogue of the Wald identity for non-Markov time.

 

March 2, Tuesday,               Albert Shiryayev, Change of time and change of measure as methods of the construction of processes and distributions in the financial modeling. General ideas of the construction of processes with complex structure via a change of time of processes with simple structure.

 

March 4, Thursday,             Albert Shiryayev, Some new results of stochastic calculus and their applications in mathematical finance

 

March 8, Monday,  Statistics Seminar Room 520 Mathematics Building Tea and Coffee will be served before the seminar at 3:30PM, Room 621 Math

Albert Shiryayev,  Solving The Problem Of The Quickest Detection Of Change Of Parameter Of Poisson Process

 

 

March 9, Tuesday,               Albert Shiryayev, Recent results on the ``Ito formula'' with application to the option pricing on finite intervals

 

March 11, Thursday,           Albert Shiryayev, Survey lecture on the general theory of optimal stopping (martingale and Markov settings, discrete and continuous time) Panorama of applications to the stochastic calculus (maximal inequalities), mathematical statistics (sequential analysis), financial mathematics (option pricing)

 

 

March 23, Tuesday,             TBA

March 25, Thursday,           Ronen Israel (AQR) TBA

April 6,      Tuesday,            TBA

April 27, Tuesday                                TBA

 

Rick Klotz (Managing Director and Senior Risk Manager, Greenwich Capital) Understanding US Fixed Income Market (Mini-course with slide demonstrations) Note that the order of topics can be changed.

 

March 30, Tuesday,             Rick Klotz, (Greenwich Capital) U.S. Fixed Income Markets, Bond Math

April 1, Thursday,                Rick Klotz, (Greenwich Capital) U.S. Fixed Income Markets

Apr. 8, Thursday,                 Rick Klotz, (Greenwich Capital)  Spot, Forward rates and Options

Apr. 13, Tuesday,                Rick Klotz, (Greenwich Capital) U.S. Fixed Income Markets

Apr. 15, Thursday,               Rick Klotz, (Greenwich Capital) Derivative Products

Apr. 20, Tuesday,                Rick Klotz, (Greenwich Capital) Agency Mortgage Markets

Apr. 22, Thursday,               Rick Klotz, (Greenwich Capital) Conclusion

 

There is no Midterm or Final exam in this class. 100% of the grade will be calculated on the basis of the Course Project. Project can be a group project (similar to MAT 4071) or individual. Students must form a group, select a topic either themselves or in consultation with prof. Smirnov, and e-mail group list, topic and proposal to prof. Smirnov by February 12

 

The projects are due April 29 and will be presented on April 29, May 4 and 6 in class.

 

Recommended books (these books are given for reference purposes, students are not required to purchase them)

 

1.   Albert N. Shiryaev, Essentials of Stochastic Finance: Facts, Models, Theory

World Scientific Pub Co; ISBN: 9810236050

 

2.   Christina I. Ray , The Bond Market: Trading and Risk Management, McGraw-Hill Trade,

ASIN: 1556232896

 

3. Paul Wilmott, Paul Wilmott on Quantitative Finance, 2 Volume Set, John Wiley & Sons;

ISBN: 0471874388