This equation was supposed to be secret, how do you think James Anderson is trapping Shiv LBW?

I have seen Ray's Equation ... now is all make sense,why did I not think of it before

Soa wah di big ting.  Dah bai figga out lil bettah how ah coconut ah drap and kank abie head.  Wan ting mi goa seh, dah wan good kanks.

It's spinner Graham Swann who denied Chanderpaul a hundred at Lords---he was out LBW for 91--Swann also nailed Chanders LBW for 46 at Trent Bridge.

By the way, the 2 blokes who came up with the formula below were awarded  the Nobel Prize in econ:

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That actually came to my mind.  But cricket is art bai.

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Yeah bai...dem two formulas don't have any bearing on anything. Dem came from de most useless profession.

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Hehe...I like this rass.  On a serious note, once they verify his solution it can have great applications. Having an analytical solution is always neat and will help those who need to make objects and other stuff that fly. When dem cyant solve tings yuh gat to use numerical methods that sometimes can change from one situation to the next as in econ and finance.  

why are some people smarter than others?

The Rev will always give credit where its due--Myron Scholes and Robert Merton deserved the Nobel prize for the great work they did as academics providing a new method for determining the value of derivatives.

But when Scholes and Merton got into the real world---they were principals at Long Term Capital Management---they failed miserably---LTCM blew up in 1998---lost nearly 5 billion in 4 months---the Fed had to come to the rescue. Scholes and Merton should have stayed in academics---it's relatively safe there.

Rev

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The model did not fail and the formulas are used each day from the corn farmer to the airline CFO to hedge risk. LCTM was not trading a strategy on the options formula. It was simply their capital drying up after their prices did not converge fast enough due to the Russian crisis. If you have a strategy based on heavy leverage then you will be wiped out from events fundamentally uncertain that no one can assign a probability distribution to.  They made hundreds of millions at the personal level. Does that ring like failure to you? That LCTM failed does not mean they lost everything. Hedge funds fail all the time.

I never implied that the models failed---infact the options pricing models were pure genius---the derivatives world wouldn't be where it is today without Black-Scholes.

This is public information:

quote:

The company(LTCM) used complex mathematical models to take advantage of fixed income arbitrage deals (termed convergence trades) usually with U.S., Japanese, and European government bonds. Government bonds are a "fixed-term debt obligation", meaning that they will pay a fixed amount at a specified time in the future.

 

As LTCM's capital base grew, they felt pressed to invest that capital and had run out of good bond-arbitrage bets. This led LTCM to undertake more aggressive trading strategies. Although these trading strategies were market neutral, i.e. they were not dependent on overall interest rates or stock prices going up (or down), they were not convergence trades as such. By 1998, LTCM had extremely large positions in areas such as merger arbitrage (betting whether mergers would be completed or not) and S&P 500 options (net short long-term S&P volatility). LTCM had become a major supplier of S&P 500 vega, which had been in demand by companies seeking to essentially insure equities against future declines.^[15]

Because these differences in value were minute—especially for the convergence trades—the fund needed to take highly-leveraged positions to make a significant profit. At the beginning of 1998, the firm had equity of $4.72 billion and had borrowed over $124.5 billion with assets of around $129 billion, for a debt to equity ratio of over 25 to 1.^[16] It had off-balance sheet derivative positions with a notional value of approximately $1.25 trillion, most of which were in interest rate derivatives such as interest rate swaps. The fund also invested in other derivatives such as equity options.

Rev

Why the Indians excel in math and science and we Guyanese of Indian descent have very limited success?  Could it be our attitude towards learning, environment at home not conducive, or perhaps our West Indian hybrid diet does not  do us good when it comes to learning?

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You are look at the wrong reasons. It has nothing to do with diet and aptitude. I know of about two world class Afro Guyanese mathematicians. For Guyanese Indians it's about values. Just look at the post of Rev Al and Dem_Guy on GNI and you will get an insight into the mentality of the leadership of the Indians for anything bookish. The same mentality is played out in the PPP that allowed the disintegration of physics and mathematics at UG. If you read too much you will be seen as having no bearing on real life, whatever that means. For these people books do not encode reality. Just study the insights of the Rev Als and Dem_Guys and you will see what I am saying. 

There are over 1 billion Indians from India.

How many Guyanese East Indian are there ?

A few hundred thousand ?

Listen! Dont denigrate Guyanese East Indians. Those who have pursued higher education have achieved remarkable success.

And in terms of percentage---I wont be surprised to find out that a higher percentage of Guyanese East Indians have degrees in math and sciences than Indians from India---remember I said percentage wise.

Rev

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Hehe...yeah...I have a lil brite bai at UG who ah does wuk wid. De man is a lecturer and went up for promotion and Bibi Shadick and Indra Chandrapaul turned him down...hehe...that is PPP schalars for you. The only probable reason for them turning him down is because I had to write a letter for him as is normal when you do joint work. De man is a strong Ramotar supporter. De man would give his life for Donald. Anyhow I told him he should leave Guyana and go live in dem black man Caribbean kuntry where they will put a premium on his intelligence and skills. I will try meh best to help him get something in dem blackman kuntry. We gat to leff Guyana to the Bibi-Indra-Prem-(and de other schalar who used to liberally sign duty free letters) type schalars.   

I have an Indian friend who works in the IT field. He was recruited by Microsoft back in the nineties. He told me that Israeli and Russian coders have an edge over Indian coders because most Indian students grew up very hard. India is moving ahead with its technology programs inspite of all the difficulties they face. They must because of the threat they face from China today both economic and military. He pointed out that the Chief engineer of the ISRO project that recently launched the long-range ballistic missile test is an Indian woman from the State of Kerala.

Yeps they invented the number zero because they like to pay zero for everything.  Just kidding, watching too much Russel Pieters.

Maybe coolies invent ZERO cazz nuff abie ZEROS, jess look abie donk hay.  But nak mek worries, ABIE PON TAP...countin' from "ZERO".