What this loss means will be appreciated from the statement that one bushel of wheat contains sufficient energy to support the average working man for 15 days. ↗
Briefly speaking, our conclusion is that stochastic volatility does not make a huge difference as far as the pricing is concerned if you get the average volatility right. It makes a big difference as far as hedging is concerned. ↗
When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward. ↗
If newspapers were a baseball team, they would be the Mets - without the hope for those folks at the very pinnacle of the financial food chain - who average nearly $24 million a year in income - 'next year.' ↗