Milk production at a farm was low, so the farmer asked his brother, a physicist, for help. The physicist built some models and did a few calculations and finally told his brother that he had a solution, but it would only work if the cows were spherical and in a vacuum.

The ** Cow Shaped Cow** project was born out of frustration with the textbook derivations of the standard models used in quantitative
finance. They are either wrong (e.g. Iain J. Clark), hand-wavey (e.g. John C. Hull, Peter Austing, Wilmott), missing (e.g. Brigo-Mercurio)
or vacuous (e.g. Open Gamma Quantitative Research). Moreover, they usually present the simplest case (i.e. the Spherical Cow), ignoring
real world considerations like term structures and smiles.

The project aims to provide clear, concise and complete derivations of the standard models that are used in quantitative finance, with all of the algebra for the general case explicitly worked out. Stepping through the algebra is important for two reasons:

- Algebra builds character
- It provides a clear intepretation and intuition of the terms used in models

The second point is important for anyone who wants to extend the models, or use them in non-standard ways. The project is a work in progress,
and this page will be updated as more derivations are published. As a bit of notation, *Black-Scholes* refers to any model with one stochastic
variable, and not just the classical constant parameter model.

Available papers are: