Manhattan Reborn 1978

new York.

Evening~

Manhattan, fourth floor of The Stanley, Wall Street.

Lawyer George McLennan walked out of David's office carrying a large briefcase, smiled and nodded to his secretary Maggie, and left.

Giovanni, who was sitting diagonally opposite the secretary Maggie with his back to her, felt a little bored, put down the magazine, looked back and asked.

"Is it time to get off work?"

"Hmm..." Secretary Maggie looked down at her watch, then glanced at the closed door of David's office, stood up, walked to the door and looked inside through the crack.

in the office.

David stood by the window with his hands on his hips, the afterglow of the setting sun shining on his serious profile.

Maggie held the door handle and looked at him quietly for two minutes, but finally gave up disturbing him.

But just as she was about to turn around and return to her seat, David's "bad friend" Bloomer strode over and asked loudly.

"Hey Maggie, is David in there?"

"exist.."

"Oh, thank goodness." Bloomer let out a long sigh, winked at Maggie, pushed the door and walked into the office.

"David!"

"What are you doing?"

"..." David put down his arms and looked back at Bloomer, his mood improved a little and he smiled.

“I’m watching the sunset.”

"What's so good about it?"

"Come here and see what I brought you!" Blumer put down the briefcase in his hand, took out a folder from it and said with a smile.

David took a few steps forward curiously, opened the folder and took a look, his expression gradually turning into one of surprise as he asked.

“Has our data center completed its first software testing?”

"Yes!"

Bloomer gave an expression that said "come on, praise me" and smiled while sitting on the chair with his hands spread out.

"Oracle's Larry Ellison, Bob Miner and Edmund Oates, led a dozen software engineers and completed the first version of the data center software testing based on the UNIX Version system."

"Although it still has the disadvantages of cumbersome retrieval operations and a relatively small amount of retrievable data storage."

"But its performance has exceeded the current industry standards for domestic data storage systems and can fully support our next plan!"

"Ah."

David flipped through the data in his hand, walked over to sit next to Bloomer, and said after thinking for a moment.

"I contacted Giles this afternoon. His entry into Danas Company went smoothly today. He should be getting busier in the future."

"I understand!" Bloomer knew what David wanted to say and continued.

"So besides me, you can't spare the time to take care of the data center, right?"

"..Sorry!" David looked at him with an apologetic look in his eyes.

"Hahaha~ I should be the one thanking you for helping me find a job I like!" Bloomer smiled and waved his hand to show that it was okay.

David was in a better mood when he saw his bright and happy smile. He smiled and said, "When economics was called boring, many people chose to discover its applicability and basis in the real world through mathematical theory."

"That's why there are complex mathematical tools in investment analysis that are used to estimate the value of financial derivatives."

“Option pricing is one of the most mathematically complex problems in all financial applications.”

"In 73, Fisher Black and Chakra Scholes co-authored and published a landmark paper, The Pricing of Options and Corporate Liabilities, which described a method for determining the price of call options."

“You should know that a call option gives the holder the right (but not the obligation) to buy a financial asset (the underlying asset) at a specific price on a specific date in the future.”

"Also in 73, the Chicago Board of Trade officially established the options trading market, and Texas Instruments soon launched a calculator for calculating option values."

"With them, although the security of option trading has been significantly improved and the risk has been greatly reduced, neither the option pricing model proposed by Black-Scholes, the option pricing calculation formula given by the Chicago Board Options Exchange, nor the option pricing calculator launched by Texas Instruments can satisfy everyone."

“For example, in 77, economists including Professor Jia Lai used the stock options data listed on the Chicago Board Options Exchange to test the Black-Scholes model for the first time.”

"He finally concluded that the model's valuation of at-the-money options is satisfactory, especially for options with a remaining validity period of more than two months and no dividends paid; for options with high appreciation or depreciation, the model's valuation has a large deviation, overestimating depreciation options and underestimating appreciation options; and there are large errors in the valuation of options approaching expiration dates."

“And when the dispersion is too high or too low, it will undervalue low-dispersion call options and overvalue high-dispersion call options.”

"But overall, the Black-Scholes model (BS model) is still quite accurate and is a pricing model with strong practical value."

“The BS pricing model formula based on dynamic hedging strategy makes risk control of option trading possible, thus promoting the development of the derivatives market.”

"..!?" Bloomer looked at David with a dazed look.

He licked his lips unconsciously, several thoughts flashed through his mind, and he tried to ask: "You want to put the BS model into... our data center?"

"Yes!"

David found a piece of paper and a pen on the table and said as he wrote: "The original intention of establishing a data center is to solve the difficulties of collecting and organizing data, and to use it to help us save many steps of tedious computational problems."

"Now that we have the applicable BS option pricing model calculation formula, we can make the powerful computing power of the data center play a greater role~"

David wrote a few lines on the paper, put down the pen and said, "In 70, Edgar Frank Codd, a researcher at IBM, opened the era of relational databases with a paper titled "A Relational Model for Large Shared Databases."

"In 75, IBM released the latest laser printer technology."

"In 76, Cray Research Inc., a company founded by Seamus Cray, launched the supercomputer Cray-1 in collaboration with the University of Pennsylvania, which opened a new era of supercomputers with 1.5 million floating-point operations per second."

"As far as I know, in the past two years, IBM and HP have been rushing to organize manpower and build their own supercomputers."

"In addition, there are pioneers in the development of the computer industry, such as Motorola, Compaq, Sony, Philips, Intel and Apple, who are also actively promoting the rapid development of computer technology."

"So the Oracle database that Oracle helped us successfully build is enough to be written into history, but it still has a lot of potential that can be tapped in my plan!"