How does the fact that a model has two features make understanding one of them p... | Hacker News

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		yummyfajitas on Oct 20, 2010 \| parent \| context \| favorite \| on: Why didn’t people in finance pay attention to Beno... How does the fact that a model has two features make understanding one of them pointless? If you are seeking a grand unified theory of everything, maybe it's pointless. Black Scholes is just a model. If you are seeking to make money, Black Scholes is one tool that can help you do that. And make no mistake - people do make billions trading models which incorporate elements of Black Scholes.

wazoox on Oct 20, 2010 [–]

They make billions for some time, then all their profits are wiped out by some "black swan". Fortunately, our governments are here to save the day...

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