Nassim Taleb recently tweeted this photo of an index card that outlines “sins to remember.” And presumably avoid.
Abstract: Proof that under constraints of Put-Call Parity, the probability measure for the valuation of a European option is risk neutral under any general probability distribution, bypassing the Black-Scholes-Merton dynamic hedging argument, and without the requirement of complete markets. The heuristics used by traders for centuries are both more robust and more rigorous than held in the economics literature.
What can we learn from Mr Dawkins’ errors and misuse of probability?
Nassim has posted a link on his Facebook Page Chapter 1 of the Technical Companion for the INCERTO: An Introduction to Fat Tails and Turkey Problems:
Antifragility: A User’s Manual
Learn to thrive in a volatile and complex world by creating “antifragile” organizations that thrive on stress and disorder
A two-day program for senior management
November 4th and 5th, 2013
Nassim Nicholas Taleb, Distinguished Professor, Polytechnic Institute of New York University
Yaneer Bar-Yam, President and Professor, New England Complex Systems Institute
Facebook is the perfect platform for eccentric author Nassim Taleb, whose knack for thinking outside the box and waxing poetic is unparalleled.
Here’s how the acclaimed author of “The Black Swan,” describes his Facebook account: “This is for philosophical discussions. Please, no finance (or similarly depraved topics), and no journalists.”