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Mathematics
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Adding Fractions?
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The most famous equation in finance, the Black-Scholes/Merton equation, came from physics. It launched an industry worth trillions of dollars and led to the world’s best investments. Go to https://www.eightsleep.com/veritasium and use the code Veritasium for $200 off your Pod Cover.
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A huge thank you to Prof. Andrew Lo (MIT) for speaking with us and helping with the script.
We would also like to thank the following:
Prof. Amanda Turner (University of Leeds)
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References:
The Man Who Solved the Market: How Jim Simons launched the quant revolution, Gregory Zuckerman. Penguin Publishing Group. - https://ve42.co/GZuckerman
The Physics of Finance: Predicting the Unpredictable: Can Science Beat the Market? James Owen Weatherall. Short Books. - https://ve42.co/FinancePhysics
The Statistical Mechanics of Financial Markets, J.Voigt. Springer. - https://ve42.co/Springer
Black, F., & Scholes, M. (1973). The pricing of options and corporate liabilities. Journal of political economy, 81(3), 637-654. - https://ve42.co/BlackScholes
Cornell, B. (2020). Medallion fund: The ultimate counterexample?. The Journal of Portfolio Management, 46(4), 156-159. - https://ve42.co/Medallion
Images & Video:
Ed Thorp on The Tim Ferris Show - https://www.youtube.com/watch?v=CNvz91Jyzbg
Jim Simons on TED - https://www.youtube.com/watch?v=U5kIdtMJGc8
Jim Simons on Numberphile - https://www.youtube.com/watch?v=QNznD9hMEh0
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Directed by Will Wood and Derek Muller
Written by Will Wood, Emily Zhang, Petr Lebedev and Derek Muller
Camera operation by Raquel Nuno
Additional research by Gregor Čavlović
Edited by Jack Saxon and Trenton Oliver
Animated by Fabio Albertelli, Jakub Misiek, Ivy Tello, David Szakaly and Will Wood
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Not everything that is true can be proven. This discovery transformed infinity, changed the course of a world war and led to the modern computer. This video is sponsored by Brilliant. The first 200 people to sign up via https://brilliant.org/veritasium get 20% off a yearly subscription.
Special thanks to Prof. Asaf Karagila for consultation on set theory and specific rewrites, to Prof. Alex Kontorovich for reviews of earlier drafts, Prof. Toby ‘Qubit’ Cubitt for the help with the spectral gap, to Henry Reich for the helpful feedback and comments on the video.
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References:
Dunham, W. (2013, July). A Note on the Origin of the Twin Prime Conjecture. In Notices of the International Congress of Chinese Mathematicians (Vol. 1, No. 1, pp. 63-65). International Press of Boston. — https://ve42.co/Dunham2013
Conway, J. (1970). The game of life. Scientific American, 223(4), 4. — https://ve42.co/Conway1970
Churchill, A., Biderman, S., Herrick, A. (2019). Magic: The Gathering is Turing Complete. ArXiv. — https://ve42.co/Churchill2019
Gaifman, H. (2006). Naming and Diagonalization, from Cantor to Godel to Kleene. Logic Journal of the IGPL, 14(5), 709-728. — https://ve42.co/Gaifman2006
Lénárt, I. (2010). Gauss, Bolyai, Lobachevsky–in General Education?(Hyperbolic Geometry as Part of the Mathematics Curriculum). In Proceedings of Bridges 2010: Mathematics, Music, Art, Architecture, Culture (pp. 223-230). Tessellations Publishing. — https://ve42.co/Lnrt2010
Attribution of Poincare’s quote, The Mathematical Intelligencer, vol. 13, no. 1, Winter 1991. — https://ve42.co/Poincare
Irvine, A. D., & Deutsch, H. (1995). Russell’s paradox. — https://ve42.co/Irvine1995
Gödel, K. (1992). On formally undecidable propositions of Principia Mathematica and related systems. Courier Corporation. — https://ve42.co/Godel1931
Russell, B., & Whitehead, A. (1973). Principia Mathematica [PM], vol I, 1910, vol. II, 1912, vol III, 1913, vol. I, 1925, vol II & III, 1927, Paperback Edition to* 56. Cambridge UP. — https://ve42.co/Russel1910
Gödel, K. (1986). Kurt Gödel: Collected Works: Volume I: Publications 1929-1936 (Vol. 1). Oxford University Press, USA. — https://ve42.co/Godel1986
Cubitt, T. S., Perez-Garcia, D., & Wolf, M. M. (2015). Undecidability of the spectral gap. Nature, 528(7581), 207-211. — https://ve42.co/Cubitt2015
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Executive Producer: Derek Muller
Writers: Adam Becker, Jonny Hyman, Derek Muller
Animators: Fabio Albertelli, Jakub Misiek, Ivy Tello, Jonny Hyman
SFX & Music: Jonny Hyman
Camerapeople: Derek Muller, Raquel Nuno
Editors: Derek Muller
Producers: Petr Lebedev, Emily Zhang
Additional video supplied by Getty Images
Thumbnail by Geoff Barrett
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