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Exlpore more Risk quotes
"If you are trying to look clean, neat and avoid casting your nets in trouble waters, you will catch no fish."
"The uncertainties in life are so uncertain for us to determine the kind of woe we shall be entangled in in the next future. When you stay dormant, your life is at risk; when you dare to take a step, you take a step to take a risk. We have a choice. Yes! a choice to choose to dare to get to our real reasons on earth or to choose to live in mediocrity and conformity, but, we ought to note that, it is riskier to risk nothing when the life we live is always at risk."
"Lust and flirting are dangerous because at first they are not noticeable."
"Any time you put yourself on the line, you risk (and maybe fear) failing, falling, being embarrassed, or looking stupid-none of which are comfortable."
Explore more quotes by John Hull
"Alan White and I spent the next two or three years working together on this. We developed what is known a stochastic volatility model. This is a model where the volatility as well as the underlying asset price moves around in an unpredictable way."
"We concluded that you cannot rely on delta hedging alone. It sounds simplistic to say that now, but back then, this was the sort of thing people were only just beginning to realize."
"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."
"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."
"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."
"Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model."
"Yes, our tree has an interesting shape. The center branches reflect the shape of the zero curve. When extreme parts of the tree are reached the branching pattern changes to accommodate the mean reversion."
"The HoLee model was the first term structure model. I remember reading their paper soon after it was published and as it was fairly different from many of the other papers that I had read, I had to read it quite a few times. I realized that it was a really important paper."
"We started giving presentations at practitioner conferences in 1986, and since then all of our derivatives research has been stimulated by contact with practitioners."
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