A Beginner’s Guide to Bitcoin (Part 5): Technical Description – The Big Book

Previous Article   -   Next Article   -   Table of Contents Introduction This article and a few that follow attempt a description of the technical aspects of Bitcoin in fairly simple terms.  This includes a long section describing and justifying mining. We start with the big book. One Big Book A Big Paper Book Suppose that we … Continue reading A Beginner’s Guide to Bitcoin (Part 5): Technical Description – The Big Book

A Beginner’s Guide to Bitcoin (Part 4): Problems with Bitcoin

Previous Article   -   Next Article   -   Table of Contents Even from the very brief description so far in this series of articles you can see that Bitcoin is a kind of cool and weird form of money.  However it has some very serious problems. Technical Problems Bitcoin is slow.  In fact it’s deliberately slow and … Continue reading A Beginner’s Guide to Bitcoin (Part 4): Problems with Bitcoin

A Beginner’s Guide to Bitcoin (Part 3): Why the Excitement?

Previous Article   -   Next Article   -   Table of Contents Bitcoin is a New Form of Money If you're reading this I expect you're aware of all the excitement surrounding Bitcoin.  Of course it's a new form of money, and that's quite interesting.  However I could issue my own money in paper form, and I suspect … Continue reading A Beginner’s Guide to Bitcoin (Part 3): Why the Excitement?

A Beginner’s Guide to Bitcoin (Part 2): Bitcoin vs Money

Previous Article   -   Next Article   -   Table of Contents Bitcoin Overview Basics As I've already said I'm not assuming you know anything about Bitcoin.  To get started, below is a high level overview of the basics of Bitcoin and how payments in our new money are processed.  You may well know some of this already. … Continue reading A Beginner’s Guide to Bitcoin (Part 2): Bitcoin vs Money

A Beginner’s Guide To Credit Default Swaps (Part 4)

Introduction This post continues the discussion of changes in the credit default swap (CDS) since 2007.  Part 2 and part 3 of this series of articles discussed changes in the mechanics of CDS trading.  This part will discuss changes around how credit events are handled, and future changes in the market. Changes in the CDS Market … Continue reading A Beginner’s Guide To Credit Default Swaps (Part 4)

A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 3)

Continued from part 2. Volatility If you know a little about options already you will probably be aware that their values depend on something called volatility. Volatility is usually not needed to price derivatives that are not options. Technically volatility is defined as the annualized standard deviation of the return on an asset (in our … Continue reading A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 3)

A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 2)

Continued from part 1. Expected Value Suppose there’s a competition I can enter for free where I have a 50% chance of winning $1,000,000, and a 50% chance of receiving nothing. Obviously I’m going to enter as many times as possible. Suppose I enter 1,000 times: what will I expect to win? On average I’m … Continue reading A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 2)

A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 1)

Preface Firstly let me apologize to the .NET developers perusing this blog, as this article is a little off-topic. However, my interests range over both .NET and derivatives, and I will be posting on both topics in the future. Introduction The Black-Scholes model for pricing stock options was developed by Fischer Black, Myron Scholes and … Continue reading A Beginner’s Guide to the Black-Scholes Option Pricing Formula (Part 1)

A Beginner’s Guide to calling a .NET Framework Library from Excel

Introduction It’s fairly straightforward to call a .NET Framework library directly from Excel on Windows, particularly if you are using Visual Studio.  You don’t need Visual Studio Tools for Office.  However there doesn’t seem to be an easy guide on the internet anywhere. The Microsoft documentation is quite good on the subject, but can be … Continue reading A Beginner’s Guide to calling a .NET Framework Library from Excel