A Quote by Robert C. Merton
My principal contribution to the Black-Scholes option-pricing theory was to show that the dynamic trading strategy prescribed by Black and Scholes to offset the risk exposure of an option would provide a perfect hedge in the limit of continuous trading.
Related Quotes
The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn't use it.
Black-Scholes is a know-nothing system. If you know nothing about value - only price - then Black-Scholes is a pretty good guess at what a 90-day option might be worth. But the minute you get into longer periods of time, it's crazy to get into Black-Scholes. For example, at Costco we issued stock options with strike prices of $30 and $60, and Black-Scholes valued the $60 ones higher. This is insane.
Black-Scholes works for short-term options, but if it's a long-term option and you think you know something [about the underlying asset], it's insane to use Black-Scholes.
Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions.
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
If I had a Paul Scholes in my team, everything would be around him. At Manchester United, they saw it like that, but I think Paul Scholes is one of the best I've played against in this league, and seen anywhere.
I have no hesitation in putting a name to the embodiment of all that I think is best about football. It's Paul Scholes. In so many ways Scholes is my favourite.
You know how on the evening news they always tell you that the stock market is up in active trading, or off in moderate trading, or trading in mixed activity, or whatever. Well, who gives a
As a society, we have this perception that women are emotional. The research, however, tells us that, on trading floors, that poor risk rises and falls with testosterone levels, and these trading floors are 85 percent, 90 percent male, and these gentlemen tend, under periods of stress, to show off for each other. That's dangerous.
I'm looking into making toilet paper. It's not an option unless you a bum and gotta use newspaper. It's not an option. Like, it's an option if you wanna drive a car. It's an option if you wanna use a straw. It's an option if you wanna wear a pair of Nikes or Reeboks.
Insider trading by hedge funds has a long and distinguished history, dating to the days when people didn't know that there was such a thing as a hedge fund.
Roy Keane and Paul Scholes were unbelievable players. You cannot compare yourself to them. It is impossible. Scholes especially, I like him a lot, and I have a lot of respect for what he did for United.
If he is having a bad game, a team-mate might feel Paul Scholes is not quite on his game, but a spectator wouldn't notice. Scholes, of all the players I have played with, has the highest bottom level.
I would love to see public option. If we had public option, then people would have that ability to supplement that public option with an additional health plan.
I try to avoid wearing black because sometimes it's the easy option. But I'm young, so it's nice to be able to play with color and not just wear black all the time. I can save that for when I'm older.
So my message is in whichever realm, be it going into space or going into the deep sea, you have to balance the yin and yang of caution and boldness, risk aversion and risk taking, fear and fearlessness. No great accomplishment takes place, whether it be a movie or a deep ocean expedition, or a space mission, without a kind of dynamic equipoise between the two. Luck is not a factor. Hope is not a strategy. Fear is not an option.
Related Authors
Adam Smith Quotes
Scottish
Economist
Alan Greenspan Quotes
American
Economist
Benjamin Graham Quotes
American
Economist
Friedrich August von Hayek Quotes
Austrian
Economist
John Kenneth Galbraith Quotes
American
Economist
John Maynard Keynes Quotes
English
Economist
Joseph Stiglitz Quotes
American
Economist
Ludwig von Mises Quotes
Austrian
Economist
Milton Friedman Quotes
American
Economist
Muhammad Yunus Quotes
Bangladeshi
Economist
Murray Rothbard Quotes
American
Economist
Paul Krugman Quotes
American
Economist
Richard Thaler Quotes
American
Economist
Robert Reich Quotes
American
Economist
Thomas Sowell Quotes
American
Economist
Walter E. Williams Quotes
American
Economist