I’ve come across a very useful plugin for WordPress which highlights code in posts using GeSHi called WP-Syntax. This plugin is easy to use and adds highlights simply by putting the appropriate tags around code blocks. For instance, we can make the following R code much more readable by using WP-Syntax.
## Generate 100 standard normal random draws x <- rnorm(100,0,1)
A patch is avaliable which includes R code highlights, something which isn’t available in the default WP-Syntax version.
I recently learned that LaTeX can be inserted directly into a WordPress posts using the WP LaTeX plugin. I’m fairly excited about this new development since it means I don’t need to upload images to display formulas, which will save me a considerable amount of time. The WP LaTeX plugin actually uses the WordPress.com server to generate the images, rather than use the server I’m hosted on, which hopefully won’t cause a performance issue.
Taking WP LaTeX out for a test spin…
I’ve searched high and low and I have yet to find a simple derivation of the Basel II credit risk formula on the web. As a result, I’ll try to post one here which I hope is accessible to a more general audience. In this post, I’ll assume the reader has some very basic knowledge about credit risk models. Also, a basic understanding of a single factor model will also be helpful.
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In 1827, the botanist Robert Brown was studying pollen particles as they floated in water. When viewed through a microscope, he observed that the particles seemed to move around as if the were alive. Although he couldn’t have known at the time, the seemingly random motion was caused by the collision of water molecules against the pollen particle. Later on, the random motion he observed would be given the name ‘Brownian Motion’.
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Believe it or not, but a drunk walking down the street is the basis for Stochastic Calculus. The sloppy walking motion of a drunk leads to some interesting models, some of the most complex of which are used to model financial derivatives.
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