<t>Back to my original question i raised for this thread. After having read many responses, so it seems many members in this forum find it hard to live without BSM theory and its formula. If the question didnot stir up your curiosity, you wouldn't bother hang out and made some comments. Especially M...

<t>QuoteOriginally posted by: MartinghoulQuoteOriginally posted by: trademastermartinghoul (a non-martingale or a misspelt martingale),Anyway...., yes i'm not a physicist. But I still hold my view that E=MC^2 does not require blind faith. You don't think i a finance practitioner, neither do i think ...

<t>martinghoul (a non-martingale or a misspelt martingale),Anyway...., yes i'm not a physicist. But I still hold my view that E=MC^2 does not require blind faith. You don't think i a finance practitioner, neither do i think of you as one. The fact is that many funds are successful without BSM theory...

<t>I noticed some members have started the Who-is-who game and might as well turn this forum into a Guess-Who's-Talking forum.Some members are saying i don't have a clear view. Let me clear that up. I started this thread with the question: What do we do without BSM theory/formula? My intention was t...

hey daveangelsince you're obssessed with the term "crackpot rigor", you shall be called "dave crackpot"...haha...i really like to call you that

<t>QuoteOriginally posted by: daveangelQuoteOriginally posted by: trademasterQuoteOriginally posted by: daveangel And don't you mean that "time is the ultimate measure" ? I am sure that it isn't. Hypothesis, prediction, experimentation, repetition - these are the tools of science.You seem so sure of...

<t>QuoteOriginally posted by: pcaspersrisk neutral probability is a purely technical tool, you can not ask if the distribution matches your expectation or is realistic (it is not and does not claim to be). To say that a price is risk neutral is similar to saying a price is crank nicholson or monte c...

QuoteOriginally posted by: daveangel And don't you mean that "time is the ultimate measure" ? I am sure that it isn't. Hypothesis, prediction, experimentation, repetition - these are the tools of science.You seem so sure of what is science and what not. Let me ask you: Is Voodoo a science?

QuoteOriginally posted by: pcaspersyes, but what does it have to do with risk neutral probability ?Does any vanilla trader quote call/put prices and say they are risk-neutral? Or can you tell if call/put quotes are risk-neutral?

<t>... and I always like what Chamberlain said"There is perhaps no beguilement more insidious and dangerous than an elaborate and elegant mathematical process built upon unfortified premises" - Thomas C. Chamberlain, Geologist (1899)Guys, say whatever you want to say. Time is an ultimate measure of ...

<r>QuoteOriginally posted by: pcaspersQuoteOriginally posted by: trademaster Many ppl believe subjective probability is closer to reality than risk-neutral probability.what is that supposed to mean ?Early works on subjective probability by Bruno de Finetti (1937). PC Fishburn, "A general theory of s...

<t>QuoteOriginally posted by: exneratunriskBSM "theory" .... is based on the trick to replicate an option with a pair of two things with different numeraires.Yes. You know those wily Austrian philosophers with their bags of epistemological tricks!So if i'm not mistaken, you're saying BSM theory (aka...

QuoteOriginally posted by: exneratunriskBSM "theory" .... is based on the trick to replicate an option with a pair of two things with different numeraires.What? The trick? Are you making a joke?

QuoteOriginally posted by: GamalQuoteOriginally posted by: PaulAnd I thought the Scottish independence debate was heated!Nobody cares about Scotland, everybody cares about making money.Agree. Money makes the world go round, not independence.

<t>QuoteOriginally posted by: daveangelIts a free country on Wilmott. But thanks for allowing me to say what I wish....What makes you think that I assumed you were a male ? You really ought to stop projecting.You know what? You're simply a jealous old man! The moment i wrote down the household names...