Ever wondered how ideas from physics can used in real-world scenarios? Come to this talk to understand what is an option and how they are traded in markets. I will recall some basic notions of stochastic calculus and derive the Black-Scholes (BS) equation for plain vanilla options. The BS equation can be solved using standard path integral techniques, that also allow to price more exotic derivatives. Finally, I will discuss whether the assumptions behind Black-Scholes dynamics are reasonable in real-world markets (spoiler: they're not), volatility smiles and term structures of the implied volatility.

Junior Strings is a seminar series where DPhil students present topics of common interest that do not necessarily overlap with their own research area. This is primarily aimed at PhD students and post-docs but everyone is welcome.

A consequence of the works of Costello and Lurie is that the Hochschild chain complex of a Calabi-Yau category admits the structure of a framed E_2 algebra (the genus zero operations). I will describe a new algebraic point of view on these operations which admits generalizations to the setting of relative
Calabi-Yau structures, which do not seem to fit into the framework of TQFTs. In particular, we obtain a generalization of string topology to manifolds with boundary, as well as interesting operations on Hochschild homology of Fano varieties. This is joint work with Chris Brav.