The Boy’s Guide to Pricing & Hedging

ArXiv ID: ssrn-364760 “View on arXiv”

Authors: Unknown

Abstract

There is often an unfortunate strain of pedantry running through the teaching of quantitative finance, one involving an excess of abstraction, formality, rigor

Keywords: quantitative finance education, mathematical finance, pedagogy, practical application, financial education

Complexity vs Empirical Score

• Math Complexity: 4.0/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper focuses on conceptual foundations like replication and the law of one price with minimal mathematical formalism, and it contains no backtesting, datasets, or implementation details.

  flowchart TD
    A["Research Goal<br>Bridge gap between<br>abstract theory & practical application"] --> B{"Key Methodology"}
    
    B --> C["Analyze pedagogical<br>approaches"]
    B --> D["Develop practical<br>pricing examples"]
    B --> E["Simplify hedging<br>strategies"]
    
    C --> F["Computational Process<br>Mathematical modeling<br>+ Real-world scenarios"]
    D --> F
    E --> F
    
    F --> G["Key Findings/Outcomes"]
    
    G --> H["Enhanced understanding<br>through practical application"]
    G --> I["Reduced pedagogical<br>abstraction"]
    G --> J["Balanced rigorous<br>theory with practice"]