Solve the Problem $$\text { Use the angle sum formulas to derive } \sin ( A - B ) = \sin A \cos B - \cos A \sin B \text {. }$$

question 102

Essay

Solve the problem.
- $$\text { Use the angle sum formulas to derive } \sin ( A - B ) = \sin A \cos B - \cos A \sin B \text {. }$$

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Definitions:

Long Term Capital Management

A hedge fund management firm famous for its collapse in 1998, highlighting the risks of using extensive leverage and derivatives.

Market-neutral Strategies

Investment strategies that seek to achieve returns independent of the direction of the overall market by simultaneously buying and selling related securities.

Convergence Arbitrage

A strategy involving the purchase of a security in one market and simultaneous sale in another, exploiting differences in prices as they converge.

Statistical Arbitrage

A quantitative approach to equity trading that seeks to exploit pricing inefficiencies between related financial instruments.