Lecture 23: Introduction to Machine Learning

MIT 18.642 Topics in Mathematics with Applications in Finance, Fall 2024 Instructor: John Hull View the complete course: https://ocw.mit.edu/courses/18-642-topics-in-mathematics-with-applications-in-finance-fall-2024 YouTube Playlist: https://www.youtube.com/playlist?list=PLUl4u3cNGP601Q2jo-J_3raNCMMs6Jves John Hull, a distinguished expert in derivatives and machine learning, shared his extensive journey from mathematics to applying machine learning in finance, emphasizing its transformative role in the current industrial revolution. He explained core machine learning concepts, including supervised, unsupervised, and reinforcement learning, illustrated with practical examples like neural networks for option pricing and reinforcement learning for decision-making, highlighting both theoretical foundations and real-world applications such as hedging strategies that reduce transaction costs and improve risk management. License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.