I guess any simple idea that is really good will catch on quickly.
More Quotes from John Hull:
Our tree is actually a tree of the short-term interest rate. The average direction in which the short-term interest rate moves depends on the level of the rate. When the rate is very high, that direction is downward; when the rate is very low, it is upward.John Hull
One important measurement issue concerns the fat tails problem that I mentioned earlier. VAR is concerned with extreme outcomes. If the tails of the probability distributions we are using are too thin, our VAR measures are likely to be too low.
John Hull
Alan White and I have not as yet written anything on VAR but we have done a number of consulting projects in this area and expect to do more.
John Hull
We concluded that you cannot rely on delta hedging alone. It sounds simplistic to say that now, but back then, this was the sort of thing people were only just beginning to realize.
John Hull
The HoLee model was the first term structure model. I remember reading their paper soon after it was published and as it was fairly different from many of the other papers that I had read, I had to read it quite a few times. I realized that it was a really important paper.
John Hull
Our starting point then was trying to find a way to incorporate mean reversion into the HoLee model.
John Hull
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A friend may well be reckoned the masterpiece of nature.Ralph Waldo Emerson
We can't solve problems by using the same kind of thinking we used when we created them.
Albert Einstein
People who think they're generous to a fault usually think that's their only fault.
Sydney J. Harris