Manhattan Reborn 1978

In the bedroom on the second floor of David's house.

David sent away Big Black Mike.

After washing up, he lay down on the bed and thought about today's events.

Just now, when he said goodbye to the Nash couple, he used probing on both of them.

Alicia Nash: Favorability 63, you have earned her trust.

John Nash: Favorability? ? ?

just now.

Points: 32

It seems that Nash belongs to the kind introduced in the system, an unknown or special situation, right?

I've checked him out several times and it's like, what's his favorability level? ? ? .

Ok.

Forget about it for now.

About the Nash couple.

Princeton University is Nash's alma mater, but he was teaching at MIT.

This is because Princeton recognized Nash's talent in mathematics, but did not recognize his ability to teach students.

Alicia, as a student at MIT, took his class and began to slowly become interested in this weird teacher.

So many years after she graduated, David believed that all her former classmates and friends would have become famous.

Only she is still busy and running around for her family.

Then Alicia can take the lead in setting up the physics laboratory in the R&D center.

She can use her knowledge, abilities and connections to help David make it the best practical physics laboratory on the East Coast.

The angel investment project center also needs to communicate with Ben Likert and assign him a team of consultants who understand technology to help him find gold in the sand.

David turned over and found a comfortable position.

When he was searching for information in the Flint Library today, he found an article jointly published by Myron Scholes and economist Fisher Black in 1973, "Option Pricing and Corporate Debt."

In this article, they gave an option pricing formula, the Black-Scholes formula.

The important difference between it and previous option pricing formulas is that it relies on observable or estimable variables, which makes the Black-Scholes formula avoid the need for future stock price probability distributions and investor risk preferences. rely.

This groundbreaking research brought them great honor.

The option pricing model proposed in the article has revolutionary significance for this branch of finance and has also had a huge impact on subsequent research in other fields of finance.

In the financial market, many large investment institutions conduct arbitrage through continuous trading in the stock market and option market. Their behavior is similar to option copycats, making the option price closer and closer to the Black-Scholes copying cost. That is the price determined by this formula.

Moreover, the importance of this formula lies in that it tells people that existing securities can be used to copy new securities varieties that meet certain investment purposes. This will become the thinking method for financial institutions to design new financial products.

In the afternoon and evening, David wanted to ask Nash to help him design and calculate a new financial product, or algorithm, based on the Black-Scholes formula.

Nash definitely has the ability in this area!

But he still didn't say it.

He encouraged Nash to continue to improve the theoretical research on Nash equilibrium, make it truly appear in front of people, and also encouraged Nash to get the honors he deserved.

David let out a long breath when he thought of this.

Now that I have chosen to support Nash's research, I can only find other experts to solve this matter.

Ok.

In the article "Option Pricing and Corporate Debt", the discussion on corporate debt issues is also very original.

It pointed out that Zhao Wu of an enterprise company can be regarded as a combination of a set of simple option contracts, and the option pricing model can be used to position corporate debt, including the pricing of bonds and convertible bonds.

When using option pricing theory to evaluate corporate debt, different components of the capital structure are evaluated simultaneously. This takes into account the impact of each asset on the pricing of other assets and ensures the consistency of the entire asset structure evaluation.

The discussion of the debt problem in the article gave many companies a subversive understanding of the problem.

For example, Morgan Stanley.

A few years ago, not long after this article was published, Stanley began the first merger and acquisition case in history.

In that merger case, the evaluation of debt and asset issues was guided by the discussion in the article "Option Pricing and Corporate Debt".

Let's say that.

The Black-Scholes formula in the article "Option Pricing and Corporate Debt" is the option pricing formula that set off the second revolution on Wall Street.

David is going to find someone to help crack it to limit its scope of application and redesign a formula.

He planned to use it to evaluate the qualifications of mortgage customers in the future.

Ah~~ha~!

He yawned~

He began to feel sleepy, but he didn't resist and just fell into a deep sleep.

-------

Tuesday, September [-]th.

Another new day.

David sat on the bed and stretched for a while, feeling that he had slept great last night.

He got dressed and went out to wash up.

The door to Black Mike's room was still closed, so he probably slept in again.

After he finished himself, he went downstairs for breakfast.

Today I made an appointment to go to the river with Old Wesson.

So both Salonia and Loisa took time off from school.

In the restaurant on the first floor, David's parents and two sisters were at the dining table. David also walked over and sat down, chatting with a few people and finishing breakfast.

Old David talked to David about his encounter with Professor Nash and his wife yesterday.

He already knew it from Sidé.

"We met that Alicia in the store. At that time, Nash just followed her and kept a distance from his wife, acting like a stranger."

"I didn't expect you had such a happy chat yesterday?"

David shrugged and nodded: "They are pretty nice people. They invited me to dinner and accepted my invitation to work in my company's R&D center."

"You asked them to work?"

David laughed and introduced the current situation of the two of them, as well as their knowledge and abilities.

Old David and Sera nodded.

Loisa, who was sitting aside, softly talked about their daughter, the daughter, at school.

The Nash couple have two daughters and one son, all of whom attend schools in small towns. Their eldest daughter is a top student and should be taking the college entrance examination next year.

The second daughter is two years older than Loisa and is in ninth grade.

The younger son is only in the third grade of elementary school, one year younger than Loisa.

Their academic performance is also very good and they are always praised by the school teachers.

David chewed the bread in his mouth: "Ahilia's income has been insufficient to support Nash's medical treatment and family expenses over the years. If their daughter is admitted to a good university and cannot get a full scholarship, . . ”

The boss put down the glass of juice: "Okay David, since you have decided to ask them for help, wouldn't it be great to give Alicia more salary in your research center?"

David smiled and nodded.

He and his family talked about going on a picnic today again, wondering which of his darlings Old Wesson would take with him.

Old David laughed. Some of Old Wesson's collections were obtained from him.

Black Mike, who had just come down from the second floor, immediately became energetic when he heard this. He walked to the dining table in a few steps and asked about these things.

-------

New York, Midtown Manhattan Police Department.

Auston, who came to work in the morning, was holding a cup of coffee and staring with his big eyes at Officer William Somerset who was about to hand over work to him across the desk.

"Hey Auston, why are you looking at me like that?"

Auston put down his coffee: "Are you sure you grew up in Brooklyn? Your dad is not from Maine?"

William looked puzzled: "Of course, what's wrong? Is there any problem?"

Auston shook his head and adjusted his clothes: "Man, I think you should meet someone, an old man who looks very much like you."

William's face was full of helplessness: "What exactly do you want to say? Who are you meeting? Does he have anything to do with me?"

Auston laughed and shrugged: "If you didn't lie to me, then you should have nothing to do with each other, but you look so much alike!"

"What!??"

At this time, the phone rang, and William glared fiercely at Auston, who had a narrow face.

"This is William."

"what?"

"Where? When did it happen?"

"Okay, I'll be right there."

William put down the phone with a gloomy look on his face.

He sorted out the materials on the desk in front of him: "You bastard, you are so lucky. A big case came out right after you left. It seems that I won't be able to watch the Yankees game tonight."

"Wow, where are the tickets, man? I have time, I can go to the game for you. Haha~"

"fxxx!"

William pointed at Alston with his hand and slowly took out the ticket helplessly: "Two tickets, the middle position, take the money! You bastard!"

Auston raised his hand to grab the ticket, put it into his pocket, and then took out the cigarette and handed it to William.

"I owe you once, man, I'll treat you to a drink next time! Let's talk about the case just now,"

William took the cigarette and rolled his eyes: "Ore it again? How many times have you owed it? I want to drink the wine you invited me, but I don't know when!"

Auston lit a cigarette for him: "okok! Tell me about the case, man!"

William exhaled a cloud of smoke: "Someone just drove in front of a store under renovation on 46th Street and dumped two bodies."

Auston sat up straight, frowned and asked, "Who is the deceased?"

William leaned back: "They are two street informants from Da Security. They should have been registered at the police station and were recognized by our people."

"Impossible! They have all been dragged to New Jersey for training by Mike Bai! Did the murderer go to the training base in New Jersey to arrest people?"

"Man, I didn't know that. But now they're lying on the street. How about coming with me?"

Auston put out his cigarette butt and stood up: "Let's go!"