Black-Scholes and Black Souls

By D.T.L.F. @ INSEAD

The INSEAD Cabaret was a great showcase for the secretly talented hidden amongst us.  Kudos to the performers, most of whom put quite a bit of effort into preparation and rehearsal in their “spare” time.  Recognition is also due to Pascal Manehout, superstar finance professor and the only faculty member in attendance on Thursday evening.

Two hundred or so INSEAD participants and partners, mainly P5s, gathered at a random chateau/golf club/resort last night for the Winter Ball, with both men and women dressed to the nines.  The venue was aflutter with ball gowns and bow ties, topped off with festive masks in tune with the Carnevale theme, and fueled by a small river of Perriere-Jouet champagne.

This was the last party for the graduating class, and I could almost taste the bittersweet tinge in the air.  I spoke with a few who had lined up their dream jobs, others who had taken interim jobs just to make some cash while they continued searching for their dream jobs, and some who were still searching for any job.  “Enjoy it while you can, it goes by fast,” counseled many a departing student.  All I could do was nod and smile, as this was already made abundantly clear by the ever-more-frequent conversations with fellow P2s revolving around, “Wow, where have the last four months gone?”

Just when the stories were starting to get stale, just when I started remembering everyone’s name, just when saying hello in the hallway started becoming more genuine, and just when the truth was starting to sound like a lie, P2 is coming to an end, and friends are departing to Singapore, some never to be seen again. 

Pascal taught us that an increase in volatility translates to an increase in the present value of an option.  In that case, my life should be worth quite a bit now.

One Response to “Black-Scholes and Black Souls”

  1. Quant Says:

    Cong. increase in volatility translates to an increase in the present value of an option, that is true, but too volatile life might reduce time to career maturity as well, which decrease present value, LOL. Good wishes for your career.

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