Tag Info

New answers tagged

1

A convex function is when the line between two points on the graph always lies above the graph. And this does hold for the put, its also sometimes called a sublinear function. Also see http://en.wikipedia.org/wiki/Convex_function So the author is correct in saying that $(K-s)^+$ is convex.


1

Sorry, but despite being used as a popular example in machine learning, no one has ever achieved a stock market prediction. It does not work for several reasons (check random walk by Fama and quite a bit of others, rational decision making fallacy, wrong assumptions ...), but the most compelling one is that if it would work, someone would be able to become ...



Top 50 recent answers are included