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Thu, 06 Aug 2020
Recommended reading: Matt Levine’s Money Stuff
Lately my favorite read has been Matt Levine’s Money Stuff articles from Bloomberg News. Bloomberg's web site requires a subscription but you can also get the Money Stuff articles as an occasional email. It arrives at most once per day. Almost every issue teaches me something interesting I didn't know, and almost every issue makes me laugh. Example of something interesting: a while back it was all over the news that oil prices were negative. Levine was there to explain what was really going on and why. Some people manage index funds. They are not trying to beat the market, they are trying to match the index. So they buy derivatives that give them the right to buy oil futures contracts at whatever the day's closing price is. But say they already own a bunch of oil contracts. If they can get the close-of-day price to dip, then their buy-at-the-end-of-the-day contracts will all be worth more because the counterparties have contracted to buy at the dip price. How can you get the price to dip by the end of the day? Easy, unload 20% of your contracts at a bizarre low price, to make the value of the other 80% spike… it makes my head swim. But there are weird second- and third-order effects too. Normally if you invest fifty million dollars in oil futures speculation, there is a worst-case: the price of oil goes to zero and you lose your fifty million dollars. But for these derivative futures, the price could in theory become negative, and for short time in April, it did:
One article I particularly remember discussed the kerfuffle a while back concerning whether Kelly Loeffler improperly traded stocks on classified coronavirus-related intelligence that she received in her capacity as a U.S. senator. I found Levine's argument persuasive:
He contrasted this case with that of Richard Burr, who, unlike Loeffler, remains under investigation. The discussion was factual and informative, unlike what you would get from, say, Twitter, or even Metafilter, where the response was mostly limited to variations on “string them up” and “eat the rich”. Money Stuff is also very funny. Today’s letter discusses a disclosure filed recently by Nikola Corporation:
A couple of recent articles that cracked me up discussed clueless day-traders pushing up the price of Hertz stock after Hertz had declared bankruptcy, and how Hertz diffidently attempted to get the SEC to approve a new stock issue to cater to these idiots. (The SEC said no.) One recurring theme in the newsletter is “Everything is Securities Fraud”. This week, Levine asks:
Of course you'd expect that the executives would be criminally charged, as they have been. But is there a cause for the company’s shareholders to sue? If you follow the newsletter, you know what the answer will be:
because Everything is Securities Fraud.
I recommend it. Levine also has a Twitter account but it is mostly just links to his newsletter articles. [Other articles in category /ref] permanent link Wed, 05 Aug 2020
A maybe-interesting number trick?
I'm not sure if this is interesting, trivial, or both. You decide. Let's divide the numbers from 1 to 30 into the following six groups:
Choose any two rows. Chose a number from each row, and multiply them mod 31. (That is, multiply them, and if the product is 31 or larger, divide it by 31 and keep the remainder.) Regardless of which two numbers you chose, the result will always be in the same row. For example, any two numbers chosen from rows B and D will multiply to yield a number in row E. If both numbers are chosen from row F, their product will always appear in row A. [Other articles in category /math] permanent link Mon, 03 Aug 2020Gulliver's Travels (1726), Part III, chapter 2:
When I first told Katara about this, several years ago, instead of “the minds of these people are so taken up with intense speculations” I said they were obsessed with their phones. Now the phones themselves have become the flappers:
Our minds are not even taken up with intense speculations, but with Instagram. Dean Swift would no doubt be disgusted. [Other articles in category /book] permanent link Sat, 01 Aug 2020
How are finite fields constructed?
Here's another recent Math Stack Exchange answer I'm pleased with.
The only “reasonable” answer here is “get an undergraduate abstract algebra text and read the chapter on finite fields”. Because come on, you can't expect some random stranger to appear and write up a detailed but short explanation at your exact level of knowledge. But sometimes Internet Magic Lightning strikes and that's what you do get! And OP set themselves up to be struck by magic lightning, because you can't get a detailed but short explanation at your exact level of knowledge if you don't provide a detailed but short explanation of your exact level of knowledge — and this person did just that. They understand finite fields of prime order, but not how to construct the extension fields. No problem, I can explain that! I had special fun writing this answer because I just love constructing extensions of finite fields. (Previously: [1] [2]) For any given !!n!!, there is at most one field with !!n!! elements: only one, if !!n!! is a power of a prime number (!!2, 3, 2^2, 5, 7, 2^3, 3^2, 11, 13, \ldots!!) and none otherwise (!!6, 10, 12, 14\ldots!!). This field with !!n!! elements is written as !!\Bbb F_n!! or as !!GF(n)!!. Suppose we want to construct !!\Bbb F_n!! where !!n=p^k!!. When !!k=1!!, this is easy-peasy: take the !!n!! elements to be the integers !!0, 1, 2\ldots p-1!!, and the addition and multiplication are done modulo !!n!!. When !!k>1!! it is more interesting. One possible construction goes like this:
Now we will see an example: we will construct !!\Bbb F_{2^2}!!. Here !!k=2!! and !!p=2!!. The elements will be polynomials of degree at most 1, with coefficients in !!\Bbb F_2!!. There are four elements: !!0x+0, 0x+1, 1x+0, !! and !!1x+1!!. As usual we will write these as !!0, 1, x, x+1!!. This will not be misleading. Addition is straightforward: combine like terms, remembering that !!1+1=0!! because the coefficients are in !!\Bbb F_2!!: $$\begin{array}{c|cccc} + & 0 & 1 & x & x+1 \\ \hline 0 & 0 & 1 & x & x+1 \\ 1 & 1 & 0 & x+1 & x \\ x & x & x+1 & 0 & 1 \\ x+1 & x+1 & x & 1 & 0 \end{array} $$ The multiplication as always is more interesting. We need to find an irreducible polynomial !!P!!. It so happens that !!P=x^2+x+1!! is the only one that works. (If you didn't know this, you could find out easily: a reducible polynomial of degree 2 factors into two linear factors. So the reducible polynomials are !!x^2, x·(x+1) = x^2+x!!, and !!(x+1)^2 = x^2+2x+1 = x^2+1!!. That leaves only !!x^2+x+1!!.) To multiply two polynomials, we multiply them normally, then divide by !!x^2+x+1!! and keep the remainder. For example, what is !!(x+1)(x+1)!!? It's !!x^2+2x+1 = x^2 + 1!!. There is a theorem from elementary algebra (the “division theorem”) that we can find a unique quotient !!Q!! and remainder !!R!!, with the degree of !!R!! less than 2, such that !!PQ+R = x^2+1!!. In this case, !!Q=1, R=x!! works. (You should check this.) Since !!R=x!! this is our answer: !!(x+1)(x+1) = x!!. Let's try !!x·x = x^2!!. We want !!PQ+R = x^2!!, and it happens that !!Q=1, R=x+1!! works. So !!x·x = x+1!!. I strongly recommend that you calculate the multiplication table yourself. But here it is if you want to check: $$\begin{array}{c|cccc} · & 0 & 1 & x & x+1 \\ \hline 0 & 0 & 0 & 0 & 0 \\ 1 & 0 & 1 & x & x+1 \\ x & 0 & x & x+1 & 1 \\ x+1 & 0 & x+1 & 1 & x \end{array} $$ To calculate the unique field !!\Bbb F_{2^3}!! of order 8, you let the elements be the 8 second-degree polynomials !!0, 1, x, \ldots, x^2+x, x^2+x+1!! and instead of reducing by !!x^2+x+1!!, you reduce by !!x^3+x+1!!. (Not by !!x^3+x^2+x+1!!, because that factors as !!(x^2+1)(x+1)!!.) To calculate the unique field !!\Bbb F_{3^2}!! of order 27, you start with the 27 third-degree polynomials with coefficients in !!{0,1,2}!!, and you reduce by !!x^3+2x+1!! (I think). The special notation !!\Bbb F_p[x]!! means the ring of all polynomials with coefficients from !!\Bbb F_p!!. !!\langle P \rangle!! means the ring of all multiples of polynomial !!P!!. (A ring is a set with an addition, subtraction, and multiplication defined.) When we write !!\Bbb F_p[x] / \langle P\rangle!! we are constructing a thing called a “quotient” structure. This is a generalization of the process that turns the ordinary integers !!\Bbb Z!! into the modular-arithmetic integers we have been calling !!\Bbb F_p!!. To construct !!\Bbb F_p!!, we start with !!\Bbb Z!! and then agree that two elements of !!\Bbb Z!! will be considered equivalent if they differ by a multiple of !!p!!. To get !!\Bbb F_p[x] / \langle P \rangle!! we start with !!\Bbb F_p[x]!!, and then agree that elements of !!\Bbb F_p[x]!! will be considered equivalent if they differ by a multiple of !!P!!. The division theorem guarantees that of all the equivalent polynomials in a class, exactly one of them will have degree less than that of !!P!!, and that is the one we choose as a representative of its class and write into the multiplication table. This is what we are doing when we “divide by !!P!! and keep the remainder”. A particularly important example of this construction is !!\Bbb R[x] / \langle x^2 + 1\rangle!!. That is, we take the set of polynomials with real coefficients, but we consider two polynomials equivalent if they differ by a multiple of !!x^2 + 1!!. By the division theorem, each polynomial is then equivalent to some first-degree polynomial !!ax+b!!. Let's multiply $$(ax+b)(cx+d).$$ As usual we obtain $$acx^2 + (ad+bc)x + bd.$$ From this we can subtract !!ac(x^2 + 1)!! to obtain the equivalent first-degree polynomial $$(ad+bc) x + (bd-ac).$$ Now recall that in the complex numbers, !!(b+ai)(d + ci) = (bd-ac) + (ad+bc)i!!. We have just constructed the complex numbers,with the polynomial !!x!! playing the role of !!i!!. [ Note to self: maybe write a separate article about what makes this a good answer, and how it is structured. ] [Other articles in category /math/se] permanent link |