The King of Quants: A Conversation with Emanuel Derman

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Clearly these people are idiot savants.
 
Its entirely possible that these peoples models result in the collapse of the entire global banking system.

MCO is about to go into a death spiral.
 
Quote from JamesVU2000:

Its entirely possible that these peoples models result in the collapse of the entire global banking system.

MCO is about to go into a death spiral.
More...

Merely blaming the models of "these people" responsible in the collapse of the entire global banking system is a bit far fetched.

The entire global banking system is a hybrid system and has many players in it.

When I posted that link, I was hoping that someone will comment on the Black-Derman-Toy Model and not on some self-induced conspiracy theory.
 
Quote from DerivativesG:
When I posted that link, I was hoping that someone will comment on the Black-Derman-Toy Model and not on some self-induced conspiracy theory.
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Although the linked interview mentions the BDT Model, it does so in passing and says practically nothing about it, so it is not possible to comment on it based on the interview. Perhaps if you found another source ... ?
 
Quote from mysticman:

Although the linked interview mentions the BDT Model, it does so in passing and says practically nothing about it, so it is not possible to comment on it based on the interview. Perhaps if you found another source ... ?
More...

Here is a link to a document explaining the implementation of the BDT Model.

http://www.lcy.net/files/BDT_Seminar_Paper.pdf

On Page 6, you can also see a short list of the other models ie Vasicek and Ho Lee.
 
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