“Volatility and Correlation, (2nd Edition) - The Perfect Hedger and the Fox ” by R. RebonatoI enjoyed reading the first edition, notably part 2 which is by itself worth reading the book for. A couple questions spring to mind:1. What would you expect to find in the new edition that is not included in the first? 2. The Perfect hedger is a hedger (although not 'perfect', I believe), but who the fox is?

It's about twice the size, and the claim is that about 80% of the material is new.The name is a pun on The Hedgehog and the Fox - the perfect hedger knows one big trick.

"The name is a pun on The Hedgehog and the Fox - the perfect hedger knows one big trick."A very original thought.Though I never read Isaiah Berlin’s essay on Tolstoy view of history, I think the pun reminiscent the hedger as a fox who thinks he is a hedgehod (i.e. perfect hedger who knows one big trick) In the early 90s at one of the colleges in Oxford (All Souls if memory serves), in the middle of the quadrangle on the bench I saw Sir Isaia sitting and spotting us. I in turn, felt obligated to come up to him and shake his hands. But, in all of sudden, my way was blocked by an anxious gentleman who got very stressed from the episode, and whispered: “You’re not allowed to step on the grass.”

You are if you're a fellow, or with a fellow. And the book is in shops now. I've read about one third of it. It's great, but to be absorbed over a year rather the in a weekend.

The book is also available through the Wilmott bookshop, and is currently at 30% off RRP:Volatility and CorrelationSuzanne