The Most Beautiful Equation in Finance

In this seminar, we will demonstrate that every pricing formula in finance can be derived from a single equation
• Present values of riskless cash flow sequences
• The capital asset pricing model
• A generalized CAPM
• Correlated risky cash flow sequences
• Forwards and futures
• Options, discrete and continuous
• Private valuations

Audience:
Students should have had prior courses or practical experience covering present value, the CAPM and derivatives. Students will not only find a common basis for these pricing models, they will also become exposed to advanced valuation concepts useful in solving practical valuation problems.

Date: June 21, 2025
Time: 9:00 – 11:15 a.m. U.S. Eastern time, 15 minute break at 10:00 a.m.
Instructor: David Shimko, Professor of Financial Engineering, NYU Tandon

Jakub C

Feedback Highlight

I'm a quant working at a Tier-1 firm in Chicago. This event was outstanding. I asked a complex, multilayered question about options that I honestly thought would not get answered, and David Shimko, quick on his feet, provided both a brief and detailed response without missing a beat. **Very impressive.** Please send me notifications of all future seminars on different topics. I honestly can't think of anything negative to say. The seminar wasn't too long, since the material is so packed that it can give you food for thought for months. Thank you for teaching even though you probably don't have to!

Agenda