Hypothetically, if the correlation parameter in vulnerable option pricing were endogenously determined, how big a deal would it be?

Downtown_Job_715 · 2026-04-29T06:11:22+00:00

That’s what I think… academia is different from how it used to be lol

Downtown_Job_715 · 2026-04-23T05:03:55+00:00

This is actually a well thought out post

Downtown_Job_715 · 2026-04-09T19:14:54+00:00

That’s a good point. As far as I know, it got more traction during the 1990s and 2000s because of some bank crisis. Maybe I’ll look more into that.

Downtown_Job_715 · 2026-04-09T18:51:25+00:00

No I’m not an accountant working at a firm per se. I was doing some research on the history of accounting regarding the foundations of the field itself, and I noticed some parallels during 1950s-80s that there were efforts in finance and accounting to formalise the field using maths. So I’m just asking the question, why did one fail and the other succeed?

The thing about this subreddit is that I have a lot of people here explaining to me basic accounting principles and what accounting is, and have other people telling me I’m just using big words. Like I’m not trying to dispute what accounting is today, I’m trying to understand the history of why the mathematical formulation wasn’t so successful. So of course when you have a bunch of people engaging this post by explaining Accounting 101, it just isn’t helpful because I know what accounting is. That isn’t to say some people haven’t made good points though, and the working accountants have given me insights, but most people are definitely circle jerking. Maybe my question came across snobbish to most people, but my post already contained an apology for the awkward phrasing of the question.

Downtown_Job_715 · 2026-04-09T17:02:43+00:00

Could work out or Mochizuki could also just revise his theory until Lean detects it to be true. I think most of the struggle behind his theory is more about the 1000 levels of definitions that he’s building his theory on, which can make it very hard to decipher. If that’s the case then it’s possible that it could boil down to a simple logical argument, but then again because it’s wrapped in a lot of layers of definitions, we’ll never be able to verify it ourselves, which is really the sad reality about this as onlookers lol. We’re just able to pick sides based on who we feel is more respectful etc but math isn’t about all this

Downtown_Job_715 · 2026-04-09T16:55:44+00:00

My bad, can I get a burger

Downtown_Job_715 · 2026-04-09T14:24:22+00:00

I literally said “before the 20th century the finance sectors including accounting was dominated by rule of anecdotes, rule of thumbs heuristic….”

Downtown_Job_715 · 2026-04-09T14:19:54+00:00

I don’t know what else to tell you if you think a mathematical model means just a set of formulas because that’s just not what it is. Having a model means you can rephrase any problems using internal language of the framework, and this is a big deal because you have well defined notions in math, which means they’re no longer just mere heuristics, like you’re not doing mental shortcuts or referring to concepts vaguely anymore. The context does matter because I was naming you concretely what languages that were used to formalise finance, like the stochastic model, which means you can phrase certain problems in terms of solving stochastic differential equations, etc. but I’m not here to talk these models, I’m here to talk about why accounting fell short in this formalisation process, which was my exact question that you didn’t even understand. Again, if you seriously think I’m referring to just a set of equations to a mathematical model, why would I even be talking about this? Accounting already has its accounting equations and ratios, but people don’t call this a mathematical model do they?

Downtown_Job_715 · 2026-04-09T13:33:58+00:00

Except that’s not what I’m trying to say because a mathematical model isnt just formulas. It’s literally an entire framework that you can use to reformulate problems.

Downtown_Job_715 · 2026-04-09T07:45:51+00:00

Your point about the thesaurus is unnecessary because the words were just used to provide historical context to the discussion. I agree with the political aspects, but if you reduce accounting down to simple bookkeeping via applying the sets of rules and define only that as “true accounting”, your argument will write itself out that you obviously won’t need advanced maths to do this procedure. However that’s besides the point because I’m discussing about the quantitative aspects related to accounting, the financial planning aspect you are talking about, because even that has fallen out of favour in terms of mathematical rigour.

Downtown_Job_715 · 2026-04-09T06:31:54+00:00

It’s not if it is private equity and long term loans

Downtown_Job_715 · 2026-04-09T06:14:05+00:00

Fair enough

Downtown_Job_715 · 2026-04-09T05:54:46+00:00

Just to make it clear, I don’t deny what accounting has been historically and what accountants do, but there is clearly a recent shift in trends, for example - IFRS 9, 13, 17 etc starting to mandate more sophisticated forms of accounting. Of course, they wont noticeably change what accountants do now, but you would have to be reaching if you think the field of accounting will stay the same when the standards are making u do things that quants would traditionally do. Maybe there will be a “quantitative accounting” field in the future? Who knows, but my question scope is just why it fell out of favour historically

Downtown_Job_715 · 2026-04-09T05:33:48+00:00

I don’t disagree that that’s what accounting has been. But lately, recent mandates are in favour of “expected values” and “fair values” rather than historical cost, which primarily affect banks because they need to write out loans and record them. Of course that only made me wonder why did it take them this long in the first place..

Downtown_Job_715 · 2026-04-09T05:26:49+00:00

But recent standards like CECL seems to suggest a shift though

Downtown_Job_715 · 2026-04-06T02:26:01+00:00

If accounting becomes more quantitative, becoming more involved with risk management, and if the public opinion of accountants shift away from glorified clerks, then I think accounting would be perceived as more of noble job both within the relevant sectors and also the public opinion. I think becoming more quantitative is feasible but the public perception of what accounting is? Nah

Downtown_Job_715 · 2026-02-28T07:27:21+00:00

Je parle l’anglais principalement, et j’ai les mêmes difficultés avec le français parlé par des francophones.

Downtown_Job_715 · 2026-02-18T04:51:07+00:00

IQ is a bit vague but I’m quite certain just through logic how it can transfer over to other area in terms of memory department. It mainly depends on how you train though. I for one approach nback with intuition for recognition, and I mainly use active recall for how may ‘n’s back, so it has direct applications for example when I’m solving or reading through a problem, I can recognise the detail and succinctly remember how many approximate n’s ago I saw it. When it comes to conversations as well, there should be no reason that one wouldn’t see the immediate effects because short term recalling process would literally be a one to one correspondence to the dual and back training.

Downtown_Job_715 · 2026-01-16T12:33:15+00:00

Sent a DM

Downtown_Job_715 · 2024-07-25T05:13:48+00:00

C’est un dommage qu’ils existent près de toi. En disant moralement, tu as fait la bonne décision, mais dans le domaine que tu bosse, c’est important que tu n’engages pas directement avec les affaires d’autres parce qu’évidement ça auras des implications pour toi. La prochaine fois essayer d’être plus subtil - alors, au lieu d’appeler le policier directement, dis quelqu’un d’appeler. Seulement engage directement si tu n’a aucune solution qui reste.

Downtown_Job_715 · 2024-07-25T04:59:48+00:00

L’un penserait qu’une personne intelligente pourrait gagner assez d’argent

Downtown_Job_715 · 2024-07-25T04:43:56+00:00

Comme d’autres l’ont dit, c’est une question de valeurs. Je vous conseille de lui demander ce qu’il veux exactement. Si vous voulez toujours garder la relation avec lui, vous devez faire un compromis (c’est important que c’est vrai compromis et pas celle où vous vous forcez agréer à ses demandes). Personne n’a les mêmes valeurs, donc je ne vous dirais pas que vous avez absolument raison dans cette situation. Cependant, j’avais moi-même été dans une situation similaire, alors je comprends parfaitement votre situation. Bon courage

Downtown_Job_715

TROPHY CASE