Markdown is a lightweight markup language with a simplistic plain text formatting syntax. BiBTeX is normally associated with documents written up using LaTeX a markup language used for writing mathematical and technical documents. The Html file is written to the folder where the markdown file resides in.
The Markdown parser included in the Jupyter Notebook is MathJax-aware.
The option --frommarkdown tells that input file is a Markdown file. In side a text chunk you can use mathematical notation if you surround it by dollar signs for inline mathematics and for displayed equations. In your PDF output LaTeX will try to find the best place to put your object based on the text around it and until youre really truly done writing you should just leave it where it lies. Select a cell in.