#si

Safety on our highways has improved significantly, with the help of the Legislature and the media. ↗

— Jane D. Hull

#highways #improved #legislature #media #our

The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well. ↗

— John Hull

#could #depended #interest #model #only

The Growing Smarter laws now in place compel every community to plan their future growth and allow every citizen the right to be heard when those decisions are made. ↗

— Jane D. Hull

#citizen #community #compel #decisions #every

We improved the environment in which our children live, learn and play by decreasing crime and clamping down on abuse and violence in the home and on the streets. ↗

— Jane D. Hull

#children #crime #decreasing #down #environment

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. ↗

— John Hull

#average #big #big difference #briefly #concerned

I guess any simple idea that is really good will catch on quickly. ↗

— John Hull

#catch #good #guess #i #idea

If each of your time steps is one week long, you are not modeling the stock price terribly well over a one-week time period, because you are saying that there are only two possible outcomes. ↗

— John Hull

#each #long #modeling #only #our time

In the interest rate area, traders have for a long time used a version of what is known as Black's model for European bond options; another version of the same model for caps and floors; and yet another version of the same model for European swap options. ↗

— John Hull

#area #black #bond #caps #european

One important measurement issue concerns the fat tails problem that I mentioned earlier. VAR is concerned with extreme outcomes. If the tails of the probability distributions we are using are too thin, our VAR measures are likely to be too low. ↗

— John Hull

#concerns #earlier #extreme #fat #i

The problem with interest rates are that you are not modeling a single number, you are modeling a whole term structure, so it is a sort of different type of problem. ↗

— John Hull

#interest #modeling #number #problem #rates