Make my Day......GOV Blagojevich arrested.

[KrazyHorse]

Originally posted by TCO
Some other time, Kitty. I think I am a little limited in not having the futures valuation concepts trained that you have learned. Also, just still stlightlty think we could have interesting discussions about concepts. At the end of the day, it is all arbitrage and market efficiency.

The things to take away from this are:

1) there are situations which can be persistent where arbitrage arguments allow some wiggle room. Convenience yield is one of those places

2) futures prices are not expected price in future because of the fact that risk tolerance of market can be asymmetric (between buyers and sellers)

[Boris Godunov]

Originally posted by TCO


A. He's heading to the gym.

B. Give it a shot.

C. He's not as annoying as Asher. Maybe not, ruin.

D. Ever read Stover at Yale and the charac ter of Brockigton? There is a v alid reason for the referenc e.

A. I shall be soon, as well.

B. I have been thinking about restarting an opera thread I did ages ago, where I did plot summaries, noted the musical highlights, gave a little background, etc.

C. KH doesn't annoy me in the slightest, it's just that my eyes glaze over when math comes up. Fuzzy librul arts major.

D. No.

[TCO]

1. I actually still have not learned a good definition of convenience yeild
A. I will google it.
B. I wonder if you could have made your initial point without reliance on the term/concept of convenience yield.
C. I accept that my not learning this may rest in my slowness compared to you (while still reserving some possiblity that your teaching was not optimal.)

2. In a completely curios (not accusing sense) I wonder if the wishes of people are the important thing or the intrinsic aspects of the instrument. Surely financial players can and should come in and swamp the desires of individual asset holders if the upside/downside has different tolerance of variablity?

[TCO]

Originally posted by Boris Godunov


A. I shall be soon, as well.

B. I have been thinking about restarting an opera thread I did ages ago, where I did plot summaries, noted the musical highlights, gave a little background, etc.

C. KH doesn't annoy me in the slightest, it's just that my eyes glaze over when math comes up. Fuzzy librul arts major.

D. No.

a. good man. I will walk home from the bar.

b. Go for it. I've only seen one Operetta. Was a blast. did it with a date.

c/ He's a sweety.

d. Inter Library Loan at your public library. It is free. There are even insights to Kerry and Bush *In a srtand feay.)

[KrazyHorse]

We are talking about convenience yields on order of a percent per annum or so. And an underlying asset (oil) which has volatility of 50 or 60% per annum. You can't leverage up the way you would like to to take advantage of a minor "mispricing" (not technically a mispricing because there is no arb available) because the risk involved multiplies with leverage.

So you can't assume that big market players would swamp market preferences. In fact, they don't.

[Boris Godunov]

SaY: I always thought this was a fairly dated book that didn't hold up under modern literary scrutiny, rather like Hop-Along Cassidy?

[Boris Godunov]

Originally posted by TCO
c/ He's a sweety.

Forwarded to Q Classic for Slash Fiction thread.

[TCO]

Originally posted by Boris Godunov
SaY: I always thought this was a fairly dated book that didn't hold up under modern literary scrutiny, rather like Hop-Along Cassidy?

I don't find that so. But then I see a constancy of human nature and can find things interesting in people regardless of their outer coverings.

Capisce?

[TCO]

Oh and Fitzgerald called it "the textbook for his generation". And it's a hell of a lot lighter read than you can't go home again for somehting =lilke that. Plus I think you might appreciate Brocky.

[Boris Godunov]

If someone is ugly, I don't speak to them.

[TCO]

Originally posted by KrazyHorse
We are talking about convenience yields on order of a percent per annum or so. And an underlying asset (oil) which has volatility of 50 or 60% per annum. You can't leverage up the way you would like to to take advantage of a minor "mispricing" (not technically a mispricing because there is no arb available) because the risk involved multiplies with leverage.

So you can't assume that big market players would swamp market preferences. In fact, they don't.

Are you assuming NOT merely inability to short but ALSO inability to borrow at the riskless rate?

[KrazyHorse]

Not necessary for convenience yield. Either one messes with arb argument in the same way.

[TCO]

Originally posted by Boris Godunov
If someone is ugly, I don't speak to them.

Just because they are from another time, does not make them ugly. They can be crisply beautiful.

[TCO]

Originally posted by KrazyHorse
Not necessary for convenience yield. Either one messes with arb argument in the same way.

borrow at the riskless rate. Buy the current asset. wait until future arrives. Cha chjing.

[TCO]

BTRW, you still bever answered if it's really needed to ujnderstand the term conv yeild to make point you watned .