Monday, February 2, 2015

The safe rate in the generalized Black-Scholes

The Weiner process is mostly about power spectrum in connected networks. The key rate is band limit, the point at which the yield curve lifts one noise level above ground. Its works because the monetary zone is assumed to be a connected network with local additivity. And, of course, the tax authorities make it so.

In the general case of banker bot, the connected network is identified and its power spectrum (probability distribution of trades) is maintained, and assumed visible to all parties.  Hence the banker bot has a sampling rate.  This is how it works in physics with light being the band limit. Again, its about self sampling entities in a connected network and how they form adiabatic Poincare groups.

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