Friday, March 9, 2012

Introducing categorification into mathmatical finance

Japanese version

I told my motivation on the zeor-th talk. It is surprizing for me that Black-Scholes equation is related to Schroedinger equation by imaginary time transformation, which is posted on Phorgy Phynance as an article. In the previous post I told it with relating to Feynman-Kac formula, one of Feynman integral that is exactly proved by mathmatics. On BLOG n-cafe, Mr. Eric stresses the analogy that as just a particle is categorified into string price, option, is categorified into "price curve," bond.Namely, let consider some categorification of Black-Scholes equation.
The original article posted by John Baez in Aug 2008:

Classical String Theory and Categorified Symplectic Geometry

And I traslated into Japanese the comment part by Mr. Eric of it.

1 comment:

  1. Bellow this comment there are some arguments about Donaldson theory and Seiberg-Witten theory, namely 4DSYM can be described as U(2) gauge thoery. Moreover there are comments about the comparation between Categorification and Diff-PL topology, which would be related to Casson-hundles.

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