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Calculus II: Vector Calculus and Multivariable Analysis / Vectors and Curves in Space

Overview

A portfolio is a point in Rn\mathbb{R}^n. An options price surface is a curve. A risk-factor exposure matrix is a linear map between vector spaces. Before any of this machinery is usable in finance, you need a rigorous language for talking about direction, distance, and motion in spaces of more than one dimension — and that language is vector calculus.

This topic builds the prerequisite geometry for everything in Calculus II. It introduces vectors as mathematical objects that encode both magnitude and direction, extends the familiar calculus of a single variable to curves traced through R2\mathbb{R}^2 and R3\mathbb{R}^3, and develops the geometric vocabulary — dot products, cross products, arc length, curvature — that reappears in every later topic of this unit, from gradient descent in the optimisation topic to the divergence theorem in the integral theorems topic.

By the end of this topic you should be able to:

  • perform vector algebra in R2\mathbb{R}^2 and R3\mathbb{R}^3 (addition, scalar multiplication, length, unit vectors) and connect length to the Euclidean distance formula;
  • compute and interpret the dot product geometrically — angles, projections, and orthogonality — and recognise Pearson correlation as a normalised dot product;
  • compute the cross product via the determinant formula, interpret its magnitude as an area and its direction via the right-hand rule, and evaluate the triple scalar product as a signed volume;
  • write parametric and Cartesian equations of lines and planes in R3\mathbb{R}^3 and find distances between points, lines, and planes;
  • differentiate and integrate vector-valued functions r(t)\mathbf{r}(t), recover velocity and acceleration from a parametric curve, and compute arc length L=∫ab∥r′(t)∥ dtL = \int_a^b \|\mathbf{r}'(t)\|\,dt;
  • compute the unit tangent T\mathbf{T}, curvature κ\kappa, and osculating circle of a space curve.

In this lesson

  1. Contents
  2. The big picture

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