Introduction to Fast Fourier Transform inFinance
Introduction to Fast Fourier Transform inFinance ArXiv ID: ssrn-559416 “View on arXiv” Authors: Unknown Abstract The Fourier transform is an important tool in Financial Economics. It delivers real time pricing while allowing for a realistic structure of asset returns, taki Keywords: Fourier transform, asset pricing, financial economics, time series analysis, real-time pricing, Financial Derivatives Complexity vs Empirical Score Math Complexity: 8.0/10 Empirical Rigor: 3.0/10 Quadrant: Lab Rats Why: The paper involves advanced mathematical concepts like Fourier transforms, complex numbers, and convolution, but it is a conceptual pedagogical piece focusing on methodology rather than providing empirical data, backtests, or implementation details for real-world trading. flowchart TD A["Research Goal: Use Fourier Transform<br>for Real-Time Financial Pricing"] --> B["Key Methodology: Fast Fourier Transform<br>FFT Algorithm"] B --> C["Data Inputs: Asset Return Time Series<br>& Market Data"] C --> D["Computational Process: FFT of<br>Return Distributions to Price Derivatives"] D --> E["Key Findings: Efficient Real-Time Pricing<br>Model for Financial Derivatives"]