The World Accroding to Robert Merton

Jordan Hayes jmhayes at
Thu Jul 9 07:53:15 PDT 1998

JayHecht at wrote:

> I see now, I'm going to have 20% of my paycheck deposited
> to an exotically hedged options account that will guarantee
> me a 40% return. Hmm, so what if I can't "kick the tires,"
> I'm obviuosly a financial waif.

You're going to be a finance professor?

Hedging is "like" insurance; replace "exotically hedged options account" with "State Farm Auto Insurance" -- see the problem with this inflamatory statement?

And the use of the word "exotic" here with reference to options is just jargon: there's no sight of Brigitte Bardot in the room, just an "out of the ordinary" contract.


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