Ready To Risk It All Part I, Options Pricing

Imagine what your life could be like if for any situation you could enjoy the upside without suffering any of the downside. Say you love the color yellow, but it totally washes out your skin tone. Or, perhaps you really want to Keep Up With The Kardashians but unfortunately there aren’t enough hours in the day to follow the entire family’s Instagram accounts. It seems like all choices we have in life have a downside, but what if I told you that in financial markets there are contracts with no downside? No, I’m not trying to sell you timeshares. I’m talking about options pricing. Continue reading “Ready To Risk It All Part I, Options Pricing”

Gerard Debreu: A Drunken Oily Equilibrium

Imagine the sweet life of mediocrity

Imagine there’s a mediocre guy that lives a routine and relatively happy life. He lives life smoothly, makes well-calculated decisions, and a squirrel rushing in front of his car, twice a year, is as “surprising” as it gets. Continue reading “Gerard Debreu: A Drunken Oily Equilibrium”