Computational Finance Q&A, Volume 1, Question 21/30 ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Materials discussed in this video are based on: 1) FREE online course "Computational Finance" is available at: https://www.youtube.com/playlist?list=PL6zzGYGhbWrPaI-op1UfNl0uDglxdkaOB 2) Book: "Mathematical Modeling and Computation in Finance: With Exercises and Python and MATLAB Computer Codes", by C.W. Oosterlee and L.A. Grzelak, World Scientific Publishing, 2019. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ - The slides can be found at: https://github.com/LechGrzelak/Computational-Finance-Course/tree/main/Questions-and-Answers - See https://quantfinancebook.com/ for more details and for additional materials. - Course syllabus can be found at: https://CompFinance.ddns.net/wordpress/free-courses/ ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ This volume addresses the following questions: 1. Can we use the same pricing models for different asset classes? 2. How is the money savings account related to a zero-coupon bond? 3. What are the challenges in the calculation of implied volatilities? 4. Can you price options using Arithmetic Brownian motion? 5. What is the difference between a stochastic process and a random variable? 6. What are the advantages and disadvantages of using ABM/GBM for modelling a stock process? 7. What sanity checks can you perform for a simulated stock process? 8. What is the Feynman-Kac formula? 9. What is the implied volatility term structure? 10. What are the deficiencies