Many congratulations, James. That's fantastic news!

It seems that no-one has yet mentioned the key assumption. The price of an option is only independent of the drift rate if markets are complete and the underlying asset can be traded continuously and without frictions. If this assumption is removed the whole risk-independent edifice collapses.

<t>The subtraction of o.5vol^2 comes from applying Ito's lemma to ln S. It has nothing to do with the dynamics being under the risk neutral measure. You get this term also in the real world measure. Start by assuming that the share price follows:dS = drift.S dt + vol.S dW(t)Now use Ito's lemma to fi...

QuoteHamilton dies at Aaron's hand

You're quite right. I had remembered wrongly. It's from the Alpine branch of the Cow Tippers Association. "Cow speaks to Cow".Moooooo

I forgot about that. Where does Augustine come in it? I bet he could tip a cow like no tomorrow ...

QuoteA farm-boy friend of mine confirmed that the purpose of going cow tipping was to make the city boys step in cow manure. He swears on his life that one cannot tip a cow. I heard you could tip a baby cow, but you better watch out for it's momma.

QuoteOriginally posted by: JamesThe "LandShark" was Chevy Chase.The connection with Belushi is irrational. The only US hotel I've ever stayed in. It rained a lot.

Woof!

<t>QuoteOriginally posted by: HamiltonThe answer is:Heart speaks to heart.The famous motto of the Venerable John Henry Cardinal Newman.Since I have blabbed, there is no chance of a winner, so you mayall rest easy.I agree that this was one of Newman's favourites, but he was quoting it from an earlier...

You win. You are much more evil than I will ever be.

You're right. With only a few months to go until your birthday, I was delighted to find something for you as a gift.

<t>QuoteOriginally posted by: LongThetaNonius,There is a Lal Daswani in Kowloon (you see, I'm learning to use google) who charges about 10 times the figure that you quote. They also travel around the world. Tailor made suits seem to be quite a business.Perhaps they only charge £129 for, err, smaller...

Has anyone read this book? Any good?

I'm going to resist the temptation to say anything about Konnie and soapy water. I'll just say that things have moved on since I last watched Blue Peter.