Implied volatilityIn financial mathematics, the implied volatility (IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (such as Black–Scholes), will return a theoretical value equal to the current market price of said option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security.
Integrated circuitAn integrated circuit or monolithic integrated circuit (also referred to as an IC, a chip, or a microchip) is a set of electronic circuits on one small flat piece (or "chip") of semiconductor material, usually silicon. Large numbers of miniaturized transistors and other electronic components are integrated together on the chip. This results in circuits that are orders of magnitude smaller, faster, and less expensive than those constructed of discrete components, allowing a large transistor count.
Quantum tunnellingIn physics, quantum tunnelling, barrier penetration, or simply tunnelling is a quantum mechanical phenomenon in which an object such as an electron or atom passes through a potential energy barrier that, according to classical mechanics, the object does not have sufficient energy to enter or surmount. Tunneling is a consequence of the wave nature of matter, where the quantum wave function describes the state of a particle or other physical system, and wave equations such as the Schrödinger equation describe their behavior.
Differential signallingDifferential signalling is a method for electrically transmitting information using two complementary signals. The technique sends the same electrical signal as a differential pair of signals, each in its own conductor. The pair of conductors can be wires in a twisted-pair or ribbon cable or traces on a printed circuit board. Electrically, the two conductors carry voltage signals which are equal in magnitude, but of opposite polarity. The receiving circuit responds to the difference between the two signals, which results in a signal with a magnitude twice as large.
Volatility smileVolatility smiles are implied volatility patterns that arise in pricing financial options. It is a parameter (implied volatility) that is needed to be modified for the Black–Scholes formula to fit market prices. In particular for a given expiration, options whose strike price differs substantially from the underlying asset's price command higher prices (and thus implied volatilities) than what is suggested by standard option pricing models. These options are said to be either deep in-the-money or out-of-the-money.
Scanning tunneling microscopeA scanning tunneling microscope (STM) is a type of microscope used for imaging surfaces at the atomic level. Its development in 1981 earned its inventors, Gerd Binnig and Heinrich Rohrer, then at IBM Zürich, the Nobel Prize in Physics in 1986. STM senses the surface by using an extremely sharp conducting tip that can distinguish features smaller than 0.1 nm with a 0.01 nm (10 pm) depth resolution. This means that individual atoms can routinely be imaged and manipulated.
Central processing unitA central processing unit (CPU)—also called a central processor or main processor—is the most important processor in a given computer. Its electronic circuitry executes instructions of a computer program, such as arithmetic, logic, controlling, and input/output (I/O) operations. This role contrasts with that of external components, such as main memory and I/O circuitry, and specialized coprocessors such as graphics processing units (GPUs). The form, design, and implementation of CPUs have changed over time, but their fundamental operation remains almost unchanged.
Vacuum tubeA vacuum tube, electron tube, valve (British usage), or tube (North America), is a device that controls electric current flow in a high vacuum between electrodes to which an electric potential difference has been applied. The type known as a thermionic tube or thermionic valve utilizes thermionic emission of electrons from a hot cathode for fundamental electronic functions such as signal amplification and current rectification.
Tunnel diodeA tunnel diode or Esaki diode is a type of semiconductor diode that has effectively "negative resistance" due to the quantum mechanical effect called tunneling. It was invented in August 1957 by Leo Esaki, Yuriko Kurose, and Takashi Suzuki when they were working at Tokyo Tsushin Kogyo, now known as Sony. In 1973, Esaki received the Nobel Prize in Physics, jointly with Brian Josephson, for discovering the electron tunneling effect used in these diodes.
