Emanuel Derman

There are second acts, but …

June 30, 2011

… not all of them are totally convincing.

I am perpetually amazed at the way people can/are allowed to reinvent themselves. When I was growing up you thought you had to figure out at age 16 what you were going to do for the rest of your life. When you went to college you had to decide between medicine, arts, science, engineering, etc: either/or. The nice thing about America, and the rest of the world is slowly copying it, is that you don’t have to stick with something you started out on. There’s no “you can’t get there from here.” There are second and even third acts.

Ubiquitous derivatives

June 28, 2011

Having spent a large part of my life working on options and volatility, I tend to see options everywhere. In my forthcoming book I write about Spinoza, a deep theorizer (and not a  modeler), who regarded all emotions as derivatives of the underliers pain, pleasure and desire, just as financial options are derivatives of the underliers of equity, fixed income and credit.

Models behaving badly

June 25, 2011

Hello, I must be going
For a good many years I have been blogging at http://www.wilmott.com/blogs/eman/, a quantitative finance website run by Paul Wilmott, with whom I wrote The Financial Modelers’ Manifesto, a sort of ethical guide for financial modelers triggered by the Great Financial Crisis and inspired by the Communist  Manifesto and the Hippocratic oath. Then recently Jim Ledbetter and Felix Salmon invited me to blog on Reuters, i.e. here, where I will be continuing, and so, here is my first Reuters blog.