Saturday, February 29, 2020

MoneyWisdom #464

"... [derivative] prices are only 'accidentally numerical'. [They] are not really numerical representations of value (of underlying stocks or likelihoods of credit events), but really binding disagreements about prices. There are only prices for derivatives if there is genuinely quantifiable uncertainty."

Joshua Ramey (talking about Ayache) in Politics of Divination (2016) p.123