Finance

Introduction
  1. Finance as time-travelling retail
  2. Financial derivatives, payoff functions and portfolios: motivation
Time dependence of the payoff function

Risk

Efficient frontier, Black-Scholes 

Arbitrage

https://www.lesswrong.com/posts/CzbvB4dsLNzLzeeot/consequences-of-arbitrage-expected-cash

Fundamental questions to figure out
  1. Betting markets, prediction markets
  2. Effect of trading fees on prices/probabilities
  3. Value of stocks, money decided by network effects? But then why tends to reflect real value?
  4. Is consumption equal to income in the long run?
  5. Is stock dilution a thing? How is it different from money printing? [1]
  6. How exactly does a stock work? Where do profits go? What happens if company reinvestst them?
  7. When a government sells debt, does that increase liquidity? If so, then QE is just a swap that doesn't actually add liquidity? Does it matter if the debt sold by government is tradeable or not (since anything can be traded with swaps)?
  8. But then does private debt also increase liquidity? Of course not, right? But what exactly is the governmental power of a central bank? And isn't the value in your bank account also part of the money supply?
  9. Is consumption equal to income "in the long run"?
  10. Is money neutral? 
  11. Does stimulus work? What is its effect on GDP? What is its effect on stock prices?
Questions about assets and derivatives
  1. Bid-ask spread? What does a market maker do?
  2. What are all these divisions in an investment bank? What is the "fundamental" relationship between them? 
  3. What is PPP?
  4. Why trade forwards/futures rather than invest directly?
  5. Are payoff diagrams all that matter? Futures/forwards
  6. Why not just bet? Why derivatives?
  7. Think about how incentives set by payoffs add efficiency to the market -- esp. straddle,
  8. Payoffs for futures, swaps, etc.
  9. Hedging -- division? Multi-asset?
  10. Can any derivative be constructed? Something-something Turing completeness

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