Black Scholes Model and its frailty

 

Sharing an interesting article came across on the frailty of Black Scholes model. Rather frailty, its more about how abuse of a complex mathematical theory can lead to disastrous results. Writer has presented this on backdrop of sub-prime mortgage crisis of 2008. Link.

 

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Prisoner’s Dilemma

 

Although being out of prison is necessary to n...

Although being out of prison is necessary to negative liberty, this is insufficient to guarantee positive liberty (Photo credit: Wikipedia)

 

The concept of Prisoner’s Dilemma as taught in Economics book of CFA Level 1 has left a great impression on me. I have recently encountered an interest blog illustrating this in further detail and thought to share this with you.

 

Enjoy reading and be amused….

 

 

 

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