From Robert Dancer
Cambridge
Thank you for a fascinating insight into the nebulous world of derivatives
trading in your recent article
(“Calculated gambling”, 9 August, p 36). Of
particular interest was the Black-Scholes equation, which, as was explained, can
be used to estimate the relative value of different options on a particular
day.
However, I think a further insight into the connection between derivatives
trading and money (as exemplified by Nick Leeson and others) can be seen from
the name of the same equation, by removing both the hyphen and the two letters
immediately after it.
