“Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions.”
Source: The Big Short (2010), Chapter Five, Accidental Capitalists, p. 113
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Michael Lewis 40
American writer 1960Related quotes

“All models are wrong; some models are useful.”
For instance in George E. P. Box, William Hunter and Stuart Hunter, Statistics for Experimenters, second edition, 2005, page 440. See "All models are wrong".

“it is strange how the dead leap out on us at street corners, or in dreams”

Source: Common risk factors in the returns on stocks and bonds, 1993, p. 57

"After Nobel in Economics, William Nordhaus Talks About Who’s Getting His Pollution-Tax Ideas Right: A few governments — notably, parts of Canada and South Korea — have adapted his ideas in ways that frame them as a financial windfall for taxpayers." https://www.nytimes.com/2018/10/13/climate/nordhaus-carbon-tax-interview.html The New York Times. Oct. 13, 2018.
Part Three, Arbitrage, The Random Walk Cosa Nostra, p. 122
Fortune's Formula (2005)

"Price Flexibility and Output Stability: An Old Keynesian View" (1993)