Ep. 530: Against the Gods with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Risk in Finance
The development of the option price of model in the early 1970s by Byron Shulls and Robert Burton provided a quantitative way to look at it. The big contrast between finance and the real world is that because there are many markets for practically anything, you can reverse decisions. An option gives you the right but not the obligation to respond to a change in the scene. And so it's very helpful as a hedge. If you're making irreversible decisions, you better have some kind of control.
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