At 12:12 AM 5/26/98 -0400, Shasha wrote:
>I wonder if anybody thought of IF derivatives.
>Suppose I want to buy options for various claims, for various points in time.
>Or would like to bet that in 2 years total value of claims A and B will be
>between values of claims C and D. Or that the derivatives market
>will outpace single claims market.
>Would the conventional market math work here? Futures? Indexes?
Conventional analysis of derivative pricing does indeed works for
such derivatives.
>Arbitrage? Will discovery of new facts and publication of new ideas
>have effects similar to those the discoveries of new resources and
>technologies have on the existing "price claims" market?
The discovery of new facts has the same general effects on both kinds
of markets.
Robin Hanson
hanson@econ.berkeley.edu http://hanson.berkeley.edu/
RWJF Health Policy Scholar, Sch. of Public Health 510-643-1884
140 Warren Hall, UC Berkeley, CA 94720-7360 FAX: 510-643-2627
Received on Wed Jun 3 23:19:11 1998
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