I am devoted to scientific research, but you want to trick me into having a love relationship?

Chapter 434 Song Yao: Bah, coward
On April 9th, the weather was as good as usual. New buds sprouted from the branches on both sides of the Charles River, and dots of green were dotted among the branches.

Inside the house, Er Miao was attracted by the birdsong outside the window. He pricked up his ears and listened for a few times. Then he turned his head to glance at the biped with a calm expression. He gave up the idea of ​​asking for a hug and continued to doze off with his head drooped.

Xu Qingzhou carefully read the information and papers given by Song Yao.

Have a general understanding of your work.

Compound options involve multiple decision points, and the decisions made at each stage affect the subsequent path, so the path dependence is strong.

Multi-stage means that there may be multiple option execution points, such as different stages of an R&D project, i.e. Phase I, II, and III of clinical trials, each with the option to continue, abandon, or expand.

The difficulties lie in high-dimensional state space, path dependence, computational efficiency, numerical stability, etc., especially how to model the uncertainty in reality as a random process.

At noon, after cooking two simple dishes and eating them, he helped School Beauty Song check the Bayesian hierarchical model that had been completed and looked at the code.

【#Parameter setting
np.random.seed(42)
T = 3 # Number of R&D stages

mu_D = 0.1 #market demand growth rate
sigma_D = 0.3 # Volatility

p = 100 #vaccine unit price (US dollars per dose)]

#Generate market demand path (geometric Brownian motion)

def generate_demand_paths(D0=1e6, T=10, dt=0.1, n_paths=n_sim):
steps = int(T/dt)】

"Using PyMC3, the success rate of the Bayesian stage is updated." Xu Qingzhou stared at the code jumping on the computer screen and was amazed. "It's done perfectly."

It must be said that Song Yao is quite good at math.

The model is simple and without any unnecessary elaboration. This may be the result of a talented player.

He shook his head and wrote down the formula for expressing the project value (V) in the Monte Carlo simulation mathematical model.

[ V =\max_{au}\math+ e^{-rau}\Phi(S_au)\right]]
Two days passed quietly, and Xu Qingzhou spent most of his time working on Song Yao's mathematical models, or babysitting and cooking for the school beauty Song.

Song Yao's period is usually around the 2nd.

But in order to be lazy, she asked her boyfriend to do her bidding, and her period was delayed until the 10th.

It's simply pretending to be weak in broad daylight.

At 6pm, Song Yao sent a message asking, "I'm back, is there anything you want to bring?"

"Coke fried chicken." Xu Qingzhou hesitated for a while, but couldn't think of anything to eat, so he simply chose the old set meal.

Song Yao rejected it: "No, change another one."

Indeed, I ate it last night.

Xu Qingzhou typed: "You can buy whatever you want. I'm easy to support."

Song Yao replied coldly with an "OK".

Xu Qingzhou was waiting to be fed, his eyes fixed on the manuscript of Yice. The mathematical model required in Song Xiaohua's paper was quite complicated, and it would probably take about a week to complete it.

Forty minutes passed.

Song Yao came back with a plastic bag. Xu Qingzhou took a look at it. There were noodles and vegetables inside. He said, "I thought about it and decided that it's better to make it myself."

"Want to cook? Are you feeling better?" Xu Qingzhou asked lazily.

Song Yao pouted: "Do you want to eat?"

"If you delay eating for a few more days, I'll be worried that you might develop anemia."

"Shut up."

"Ok."

Song Yao cooked two bowls of tomato and egg noodles.

In order to lose weight, Song Yao only ate half a bowl of rice and then rested her chin on her head to look at her boyfriend.

This guy finally regained some energy and spirit, unlike the previous few days when he was in a depressed state.

She asked, “Is there a problem with the calculation?”

"I've already done part of it. Let's take a look at it later. It just so happens that I did encounter two places that I don't understand. Can you explain them to me?"

Xu Qingzhou took a mouthful of noodles and wanted to eat some garlic, but he held back.

"Is there anything you don't understand?" Song Yao's eyes showed surprise. After spending a long time with each other, she always felt that this guy knew everything. "I'm not studying economics. How can I be full if I don't understand?"

Xu Qingzhou cleaned up the dishes while Song Yao sat down in front of the computer to look at the results of Xu Qingzhou's work over the past few days.

"It seems. Everything is fine."

After Song Yao finished looking at the model, she hesitantly looked back at her boyfriend in the kitchen.

Soon, Xu Qingzhou came out, wiping his hands. She stood up and gave her seat to Xu Qingzhou. "Tell me what you don't understand?"

Xu Qingzhou pulled Song Yao to sit on his lap, "Check this part first."

"I've finished reading it." Song Yao felt more and more that this guy had bad intentions.

"The paper must be rigorous. I will explain it to you in detail."

Xu Qingzhou held her slender waist and said, "By sparsely distributing the prior distribution, we use the Laplace prior to reduce the parameter dimension. However, I don't quite understand this, this, and this."

Song Yao lowered her eyes, glanced at the claws that had dug into her clothes, tried to calm her breathing, and spoke attentively: "At different stages of research and development, when to continue investing or abandoning a project requires solving the Bellman equation."

“With real option pricing as the core, it integrates multi-dimensional theories such as risk-neutral pricing, Bayesian learning, capital budget optimization, and market failure correction.”

“Due to the lack of liquidity in biopharmaceutical projects, I want to reverse calibrate the risk price through the volatility of biotech ETFs.”

"Xu Qingzhou~"

Song Yao's voice suddenly trembled.

"Well, Mr. Song, go on, I'm listening carefully."

Xu Qingzhou nodded nonchalantly, feeling a faint fragrance in his arms. He glanced at the school beauty Song Yao. Song Yao's facial lines were not of the harsh type, but rather gentle.

His expression is usually indifferent and cold, which makes people feel distant.

However, it’s completely different when I’m with him, and I still cry and whine sometimes.

The two of them were pressed close together, and he could hear her panting between words.

Song Yao turned around and glared at Xu Qingzhou, only to see that Xu Qingzhou was looking at her calmly and innocently. She thought to herself that this guy was so shameless. Well, she seriously suspected that he was just pretending.

I just want to experience the feeling of teasing her, Teacher Song.

Don't be shy, otherwise this person will be even more proud.

Song Yao said coldly: "Here, you adjust the formula of market risk price to be consistent with risk-neutral pricing."

Xu Qingzhou was also listening, picking up a pen in his right hand and writing down what Song Yao had just said in his notebook, but he didn't listen that seriously, as one of his hands was wandering across the chest of the school beauty Song.

After a long time.

Song Yao slapped Xu Qingzhou's claws away and gritted her teeth, "Xu Qingzhou, are you asking a question?"

"You don't think it's from the Bai Gang."

Xu Qingzhou said as a matter of course.

"Get out of here. I won't talk about it anymore."

Song Yao got up from Xu Qingzhou, her fair cheeks showing a heart-warming blush.

"Okay, I'll figure it out myself."

Xu Qing was still not satisfied, and wanted to see the patient expression of School Beauty Song, so he couldn't help but smell his fingertips.

This action made Song Yao so angry that she gritted her teeth and turned back with clenched fists.

bang~
After giving the naughty guy a few slaps, Song Yao happily went to take a shower.

"together?"

"You'll be dead if you dare to come in." The voice of School Beauty Song came from the bathroom.

Xu Qingzhou curled his lips and thought to himself, I really want to give it a try, but then he noticed that Wang Xiaping had just sent a message saying that she would call him, so he gave up the idea.

bathroom.

Song Yao pricked up her ears to listen to the noise in the living room, and found Xu Qingzhou still lying on the sofa, muttering softly: "You're scared now, you coward."

(End of this chapter)