Rourkela Diaries
18 hours ago
Nov,2010 :- Internship at an Investment Bank
August, 2011 :- CFA level 3 cleared
September,2011 :-PPO
March ,2012 :-Cleared IIM, Starts Work
August, 2014 :-CFA charter, Application to foreign university for Phd
June, 2015 :-Joins Princeton/MIT
March, 2019 :-Completes Phd, become Professor of Finance in Princeton/MIT
March, 2029 :-Starts his own Hedge Fund
December,2035 :-Nobel prize for works in Financial Economics
January, 2040 :-Sets up an R&D division in Biology to achieve immortality
June,2045 :- Richest Indian
June, 2055 :- Richest person in the whole world
January, 2060 :- R&D succeeds. Attains Immortality
January, 2100 :- Annual revenue of the hedge fund surpasses GDP of USA
And he literally lived happily ever after..........
Sunday, November 14, 2010
Did you ever get this feeling of utter hopelessness and despair, something that you’ve never felt before? A well so deep that how hard you try you may never see light of the day again. Scared of everyone and anyone around you , feeling so inferior that you cringe even at the idea of coming in sight of anyone else.
And then there’s a flicker of hope as you realize that there are few good friends of yours close to you. Obviously, today they have plans and however fervently you wish that they might cancel their plans for your sake, that doesn’t happen. Suddenly it feels like everyone’s mocking you, jeering at you and all you can do is run as far away from them as possible. You begin with signing out from institute id, then facebook and then disconnecting your local landline.
In desperation you call, message few of your so called good friends, probably talking to them might lift your spirits but no one replies back. A feeling of anger and hate starts creeping in. You don’t want anyone to know that you’re so weak, vulnerable so you sign out of gtalk, switch off your mobile phone. But even that doesn’t appear enough you can still see people outside your door and windows probably looking back at you and laughing at you. So you close the door, shut your windows running away from the sight of anyone.
But you could hear people walking, shouting outside your room, talking about something that you can’t hear. It feels like they are making fun of you in silent whispers. Why can’t they leave you alone? You curl up tightly in your bed, cover yourself in a blanket to shut them out .
Thursday, November 4, 2010
Warning:- Please don’t try this at home
“I've made the most important discovery of my life. It's only in the mysterious equation of love that any logical reasons can be found.”
----John Nash
John Nash said that love is mysterious and since I have not won any Nobel yet I won’t dare to quantify love. So for the sake of blog let’s just say we can measure love by the amount of talk time that we spend in a month talking to our “you know who”.
Subject of this post is in a committed relationship. We define love in this committed relationship as the actual product. Ability to have Love (talk time) with your boyfriend can be taken as a put option. Now many of you might say boyfriend is call options for future commitments but remember for this post actual commodity is the love with your partner and if this love decreases value of the option with boyfriend will increase which is basically the characteristic of a put option.
In this post I would try to find out when we are in a committed relationship how many boyfriends/girlfriend should we have initially to completely hedge the risk and expect with confidence certain minimum return of love in certain period of time
Basic assumptions of this post:-
• Love is the amount of talk time which is quantifiable.
• Volatility is constant. (Binomial pricing assumes this, Black Scholes assumed this, I’m a mere mortal)
• Risk Free Rate is the amount of talk time you can expect from your closest/best friends irrespective of the emotional ,social, physical environment and conditions
• Boyfriend is ready to call you as much as you want and you won’t face a problem of boyfriend refusing to call. Thus option or ability to talk with boyfriend will compensate any return below expected.
• All options are American options i.e. executable before expiry (2 years)
Following assumptions are taken to provide an easily comprehensible solution and results. You can put your own expected returns and volatility to get your own customized results and number of boyfriends.
We calculate fluctuation in love every 6 months and expect a return of 40% for 2 years i.e. for 2 years our talk time should be 1.4 times the initial value. Our best friends provide a fixed return of 5%
Binomial tree for the fluctuation of love is:-
“I've made the most important discovery of my life. It's only in the mysterious equation of love that any logical reasons can be found.”
----John Nash
John Nash said that love is mysterious and since I have not won any Nobel yet I won’t dare to quantify love. So for the sake of blog let’s just say we can measure love by the amount of talk time that we spend in a month talking to our “you know who”.
Subject of this post is in a committed relationship. We define love in this committed relationship as the actual product. Ability to have Love (talk time) with your boyfriend can be taken as a put option. Now many of you might say boyfriend is call options for future commitments but remember for this post actual commodity is the love with your partner and if this love decreases value of the option with boyfriend will increase which is basically the characteristic of a put option.
In this post I would try to find out when we are in a committed relationship how many boyfriends/girlfriend should we have initially to completely hedge the risk and expect with confidence certain minimum return of love in certain period of time
Basic assumptions of this post:-
• Love is the amount of talk time which is quantifiable.
• Volatility is constant. (Binomial pricing assumes this, Black Scholes assumed this, I’m a mere mortal)
• Risk Free Rate is the amount of talk time you can expect from your closest/best friends irrespective of the emotional ,social, physical environment and conditions
• Boyfriend is ready to call you as much as you want and you won’t face a problem of boyfriend refusing to call. Thus option or ability to talk with boyfriend will compensate any return below expected.
• All options are American options i.e. executable before expiry (2 years)
Following assumptions are taken to provide an easily comprehensible solution and results. You can put your own expected returns and volatility to get your own customized results and number of boyfriends.
We calculate fluctuation in love every 6 months and expect a return of 40% for 2 years i.e. for 2 years our talk time should be 1.4 times the initial value. Our best friends provide a fixed return of 5%
Binomial tree for the fluctuation of love is:-
Delta is the change in price of option for a unit change in the price of a commodity which in simpler term means how much a boyfriend can compensate for the loss of love with your committed one. Delta for this turns out to be 0.491374
So for any committed relationship you should have 1/Delta = 2 boyfriends to completely hedge your risk and expect 40% return in 2 years
The problem with delta hedging is its dynamic hedging so to make this work you should have sufficient number of guys ready to become your boyfriend so that you can reduce or increase their numbers as required by the model. :D :P
Tuesday, July 6, 2010
Did you ever see a wolf on a full moon night standing on a cliff and howling. Did you ever wonder what is he trying to say ? I have dreamt about it as long as I can remember and I hope I can be there someday (not literally ofcourse….). So here’s what I always felt he’s trying to howl(say):-
Do you think it’s easy to reach here?
Do you think I love being here alone?
Do you think it helped when
You all said it’s impossible and impractical?
Do you think I never fell, broke a leg or two?
Do you think it’s easy to start all over after you fall
When everyone around is sniggering “We told you so”?
Do you think I never found a place
Where I just wanted to stay and say it’s enough?
Do you think I never found someone I wanted
To stand here beside me, but left me half way through?
Do you think it was all bed of roses ?
But here at this moment in this cold starry night
With moon so close that I can just jump over
Can you feel the wind breezing past me
Can you see me shivering with goosebumps all over
Oh! It’s not cold, it’s not fear, It’s not pain
It’s this unknown excitement with such great force
Oozing out of me, making me howl
Howl so loud that everyone down below could hear
Listen! Listen You fools, you all were wrong
I reached a place no one ever dared
Look, look around as far as you can see
Those mountains, that river this land all belongs to ME
I crossed the sky that you could never breach
I am the star that you can never reach
I am the Alpha and the Omega, Creator and Destroyer
I am the perfection personified
At this moment in this cold beautiful night
I just want to howl, howl my lungs out.
Damn! This is worth all the pain…..
Thursday, May 13, 2010
I hate when anyone eats as if they have all the time in the world. I don't mind people having slow eating speed but anyone who deliberately eats slowly with stupid excuses like I want to enjoy my food, damn I just want to kill them. Buy another one if you want, don't eat as if you can't afford to buy one more and you've to savor each bite of what you have.
I hate when anyone after eating at a costly restaurant comments “food was worth the price”. Just say food was good or nice , don't compare it with price. You don't have to justify if you spend a bit extra on your food, it's your money. Just enjoy your food , don't go on a guilt trip harping on how you splurged on food and then satisfy your guilty conscience by stupid comments like “it was worth it”.
I hate when anyone acts over friendly with dhaba or restaurant owner. It irritates me if you keep suggesting the cook how do you want butter on your roti or something or other about sabji. Just order a damn butter roti and vegetable from menu and shut up , they'll serve whatever they make. If you like it then fine else next time go to some other restaurant. But stop being an over friendly , obnoxious, irritating pest.
I hate when someone makes fun of other without any fact. And it irritates me even more if they start laughing after saying something completely absurd and don't even listen when you try to point out how idiot they are. For eg :- “A friend of mine had a P3 desktop and I had a P4 . At one point of time he told me “your PC is makhaao mine is far better” and started laughing. All I wanted to do was to take an iron rod and beat the shit out of him but then decided staying quiet is a better option.” I don't understand, people do enough stupid things in a day then why anyone has to say absurd things to belittle someone and even if you do at least stay quiet so that other can point out what an ass you are.
This is probably my Mein Kempf. Though I haven't said anything about how am I going to punish those guilty of above mentioned crimes but ,then , I don't have any plans of becoming dictator of India in near future. So Punishments might be the subject of my next post :D :)
Wednesday, February 10, 2010
He took a step forward and a truck coming from left slammed into him
If only he was looking at the traffic to see a truck speeding through red light
[[Truck Driver:-
If only he didn’t take the shorter route instead of usual
highway route.
If only he wasn’t distracted and didn’t ran through a red
light.
If only he wasn’t in a hurry to deliver the package
If only his wife wasn’t delivering their baby at that moment
If only he wasn’t the last one in the office when the request
for delivery came
If only he didn’t stop to pray for their baby and stayed in
office longer than usual
]]
If only he wasn’t staring at the beautiful face of “She”
If only he wasn’t picking her up.
If only he left at usual time and missed her call.
If only he wasn’t being scolded by his boss for coming late to office.
If only he hadn’t missed his office cab by 5 minutes in morning because of phone call.
If Only “She” didn’t call him in the morning to wish “Good Day”.
[[SHE:-
If only “She” could have gone home alone as usual.
If only “She” hadn’t slipped and twisted her ankle.
If only “She” saw the puddle of water.
If only “She” was wearing her contacts or glasses
If only “She” wasn’t distracted by a phone call in the morning
while getting dressed
If only “She” didn’t call him to wish “Good Day”.
]]
Saturday, February 6, 2010
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