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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."
"I'll drink your champagne. I'll drink every drop of it, I don't care if it kills me."
"You're desperate, and so am I,' I said. 'Desperate people make stupid decisions all the time.'"
"I had risked everything and gained everything, and here I was of the world and in it."
"If one tries to navigate unknown waters one runs the risk of shipwreck."
Explore more quotes by John Hull
"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."
"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."
"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."
"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."
"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."
"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."
"Our tree is actually a tree of the short-term interest rate. The average direction in which the short-term interest rate moves depends on the level of the rate. When the rate is very high, that direction is downward; when the rate is very low, it is upward."
"Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model."
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