A model of [ option ] prices that assumes: The existence of a risk-free asset paying some interest rate, for example, US Treasury bonds…
Notes on understanding modern innovations in blockchains: smart contracts [ proof of stake ] What are the advantages of blockchains? They…
Matt Levine points out a basic fact of derivatives theory: a basket of options is worth more than an option on a basket. If five stocks…
Perhaps the only free lunch in [ finance ]. Given N investments all with the same expected value and level of risk (variance), whose…
The currency of [ Ethereum ]. Why does Ether have value? It represents computing time on a shared global computer. The more Ether you have…
Foreign banks can create dollar-denominated liabilities much larger than their reserve of actual dollars, without the need to adhere to US…
Yale course: https://oyc.yale.edu/economics/econ-251 MIT course: https://www.youtube.com/playlist?list=PLUl4u3cNGP63B2lDhyKOsImI7FjCf6eDW…
Banks create money by lending. Few understand this. Alice and Bob are on a desert island. Alice has $100, which she deposits in the Desert…
[ my goals ]
The greek letters used most commonly in finance are probably alpha and beta from the [ single-index model ]. However, the term 'greeks…
It's a bit counterintuitive that high interest rates prevent inflation. After all, doesn't a high interest rate mean that the [ central bank…
We are given the opportunity to bet some fraction of our wealth on a coin flip with probability . We can repeat this as many times as we…
Naively you might think that the government just decides how many dollars there should be, and that's that. This is not true. Since [ IOUs…
NFTs 101: https://medium.com/@intenex/nfts-101-why-nfts-are-a-generational-innovation-4626ae803e3b Among many other things, NFTs are…
So the mechanism is if you have tokens you can choose to stake them. And in order to run anetwork node you must stake some number of tokens…
A portfolio containing a long (European) call and short (European) put [ option ] with the same strike price and expiry date is equivalent…
The performance of an investment can be modeled as where the 'market return' is that of some sufficiently broad index such as the S&P 50…
If you and I agree of our own volition to exchange X for Y, this implies that we both believe we are gaining value in the trade. If one of…
Thinking through: Why the toughest capitalists should root for a wealth tax ( https://www.ft.com/content/e1adf707-b95a-4422-9211-1841cd7ce…
Moxie Marlinspike on web3: https://moxie.org/2022/01/07/web3-first-impressions.html We know that people do not want to run their own…