- Joined
- 7/24/14
- Messages
- 8
- Points
- 13
Hi debaters,
In my years of trading, i've heard enough ppl talking about this so-called BS (BullShit) formula but i've never used. Let me tell you academics and quants: the assumption of constant volatility is of course absurd. Implied volatility is your distraction which hides your stupid view of the future and risk. All current mathematical models and approaches are not new and useless, and are repeatedly taught thru the last 40 years. How are they useful at all in explaining the crash and crisis we have had over the years? The so-called arbitrage-free theory proposed by Merton is absurd! Why? If the market were arbitrage-free, how did he and Schole make ~40% over the years before their LTCM collapsed? Now they hide themselves in universities just to show that the market is now arbitrage-free, no money out there to make?! Should i say "BSM formula = BullShitMate formula"?
Anyone cares to debate? Before you do, do read the works by Nassim Taleb (Black Swans) and Pablo Triana (The flawed math of financial models).
Cool arbitrager
In my years of trading, i've heard enough ppl talking about this so-called BS (BullShit) formula but i've never used. Let me tell you academics and quants: the assumption of constant volatility is of course absurd. Implied volatility is your distraction which hides your stupid view of the future and risk. All current mathematical models and approaches are not new and useless, and are repeatedly taught thru the last 40 years. How are they useful at all in explaining the crash and crisis we have had over the years? The so-called arbitrage-free theory proposed by Merton is absurd! Why? If the market were arbitrage-free, how did he and Schole make ~40% over the years before their LTCM collapsed? Now they hide themselves in universities just to show that the market is now arbitrage-free, no money out there to make?! Should i say "BSM formula = BullShitMate formula"?
Anyone cares to debate? Before you do, do read the works by Nassim Taleb (Black Swans) and Pablo Triana (The flawed math of financial models).
Cool arbitrager