totally…
Some guy in my office bet money that he would fail the CFA exam. This was his way of “hedging” himself.
Hello Mister Walrus Wrote: ------------------------------------------------------- > Some guy in my office bet money that he would fail > the CFA exam. This was his way of “hedging” > himself. So how much money do you owe him?
I don’t see this as a win-win proposition. I see it as a lose-lose: he passes the exam but is out money, or he makes money but fails the exam. A better bet would’ve been to trade oral favors with his secretary or assistant – if he passes he has to service her, if he fails she has to service him. That is a trade with positive skewness.
Actually that hedge would work well for someone who would be willing to pay more than the registration fee to pass the exam, but if he fails he would at least recover some of the fee.
I still like my trade better.
I’ll but some put options on your trade in case secretary in question is Fugly.
iheartiheartmath Wrote: ------------------------------------------------------- > I don’t see this as a win-win proposition. I see > it as a lose-lose: he passes the exam but is out > money, or he makes money but fails the exam. A > better bet would’ve been to trade oral favors with > his secretary or assistant – if he passes he has > to service her, if he fails she has to service > him. That is a trade with positive skewness. Seems like it should be the other way around
Why would it be the other way around unless you like to munch carpets??
Oh I see, you meant as a hedge. Depending on how much one likes receiving said “jobs” this might out weight one’s desire to actually attempt to pass.
True. Also depends on what your secretary looks like.
Ha ha, yes that would be a consideration. Looks don’t necessarily translate to quality performance though.