Black Scholes v Fourier transform

[Quantinator]

Yes, what your background is.
Pure maths (BTW I have a BA Mod in pure and applied maths myself so I am eligible to say something on the subject) is not necessarily the best preparation for computational finance. Depends in what you have done. Numerical analysis, applied Functional Analysis, methods and hard analysis are more useful than group theory, algebraic anything IMO.

A methods-driven maths approach is handy.

And can you program in C or C++?

I taught myself basic c language. Yeah a methods driven approach is very handy.
Just out of interest do you have any answers to the basic questions I pm'ed you please?
(I didnt want to clutter up the thread and they seem really basic if you dont mind me pming you)

 

[Daniel Duffy]

I taught myself basic c language. Yeah a methods driven approach is very handy.
Just out of interest do you have any answers to the basic questions I pm'ed you please?

C is useful, indeed.

Your questions are too vague. So I don't have an answer. Sorry.

 

[Quantinator]

C is useful, indeed.

Your questions are too vague. So I don't have an answer. Sorry.

Ok fair enough. I will think some more.
Thanks

 

[Daniel Duffy]

Ok fair enough. I will think some more.
Thanks

I would say: FT is a solution to a problem, but the problem has not been defined.

 

[Quantinator]

I would say: FT is a solution to a problem, but the problem has not been defined.

oh ok, interesting.
I will do some more reading, I have come across many papers something along the lines of Options pricing using Ft etc..but need to better understand them.

Is it fair to assume that monte carlo , Heston model, Binomial models, variance gamma are all direct alternatives to the black scholes? Or have I got the wrong end of the stick again?

 

[Quantinator]

I would say: FT is a solution to a problem, but the problem has not been defined.

Is it used when the characteristic function of the returns is known analytically?
or in this context? http://papers.ssrn.com/sol3/papers.cfm?abstract_id=520042

 

[Daniel Duffy]

Ok fair enough. I will think some more.
Thanks

 

[Quantinator]

fair enough.
Any clues please? or any starting point would be appreciated please, if possible?
Thanks