Benefits of Machine Learning and Artificial Intelligence -- Machine Learning -- Best Practices -- Setting Up the R Development Environment -- Fundamentals of the R Programming Language -- Machine Learning with R -- Application of Machine Learning with R -- Outlook.

Drawing upon more than 12 million observations over the period from 1996 to 2020, we find that allowing for nonlinearities significantly increases the out-of-sample performance of option and stock characteristics in predicting future option returns. Besides statistical significance, the...