Trilliion Dollar Bet

Discussion in 'Options' started by bathrobe, Sep 19, 2009.

  1. bathrobe



    I was wondering if anyone here has a link (I can only find an abbreviated version) of the 2000 PBS documentary on the Black-Scholes model named "Trillion Dollar Bet"
    I figured it was worth a shot since a while back someone posted "Trader"
    lawrence-lugar likes this.
  2. bathrobe


  3. lakai


  4. bathrobe


    Thanks lakai
  5. MartinGS


    Orville Wright was the first pilot to kill his passenger in a plane crash, Lieutenant Thomas Selfridge. The fact that this happened never seemed to negate what true geniuses Orville and Wilbur Wright were.

    It’s too bad that half of this video gives the impression that Myron Scholes genius is somehow diminished by the LTCM failure.
  6. erol


    that's not what I got from it.

    I showed 1/2 this video to my co-workers for a presentation.

    What I communicated to them, is the fact that models are powerful, but have their limitations. (We're in the business of building models which is why this was relevant).

    "Even the best and brightest get it wrong", not that "because they got it wrong, they're not the best and brightest".

    That's what I took away, and that's what I intended to communicate.

    Also, when they do get it wrong, the consequences are severe.

    So sometimes, we have to take a step back from our models and ask ourselves "was this what we were modeling?, is this consistent with our assumptions?"

    of course, the answer will present itself in hindsight, and they never intended to lose that much money, no one would,
  7. Trillion Dollar Bet: The Black-Scholes Formula. 2000

    good Options documentary -- just watched it, again, tonight o_O:)

    This use to be available on Youtube, but was removed because of BBC copyright infringement issues.
    OddTrader likes this.