Laws of Nature 3 - BICs

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This introductory PowerPoint video introduces the concept of BICs going from the philosophical existential to its practical applications in financial derivatives hedging. More info about BICs can be found from : http://kongtcheu.blogspot.com; http://www.4bics.org; http://tinyurl.com/cyxhpa or buying the book: BICs 4 Derivatives Volume I: Theory

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Presentation Transcript

Slide 1: 

Laws of Nature: The Peculiar Case of 3 Phil Kongtcheu a.k.a. Obi Wan Yoda

Slide 2: 

OBSERVATION: Effective and Robust Systems Seem to Often Require 3 Structural Parts, a 3rd Rail, When it seems at 1st that 2 is enough

Slide 3: 

The Holy Trinity The Father, The Son, The Holy Spirit.

Slide 4: 

The Holy TrinitySigns: -, +, 0 Negative, Positive, Zero.

Slide 5: 

The Holy Trinity Electric Charge: -, +, 0 Negative, Positive, Neutral.

Slide 6: 

The Holy Trinity Atomic Particles: Electrons, Protons, Neutrons.

Slide 7: 

The Holy Trinity Robust Government  Structure: Legislative, Executive, Judiciary.

Slide 8: 

The Holy Trinity And Now…. B… I… Cs.

Slide 9: 

The Holy Trinity BICs !!! Basis… Instruments… Contracts.

Slide 10: 

BICs Times Premium Payment Time, Payout Payment Time, Contract Agreement Time.

Slide 11: 

Robust Contracts & BICs Involve: A Seller, A Buyer, A Counterparty of Reference.

Slide 12: 

Just As Credible Games Involve: A Party, An Opposing Party, A Referee.

Slide 13: 

BICs Distinctive Features: Functional Notionals Multi-Period Static Replication Liquidity Events Immunity Crisis Mitigation

Slide 14: 

BICs Practical Benefits: Computational Tractability Hedging effectiveness & Efficiency Model Independence

Slide 15: 

BICs Theoretical Benefits: A More Effective Probabilistic Concept Elucidation of “Network Effects” Benefits of Central Counterparty Exchanges Robust Distributional Linkage

Slide 16: 

Yes, Reality is 3-Dimesional: X, Y, Z.

Slide 17: 

Beware of Dualistic Analyses: Either Or False Dichotomies Will Get You Into Trouble.

Slide 18: 

B…Read, I..nhale C s..ee. BICs

Slide 19: 

Thank You 4 Watching! Phil Kongtcheu a.k.a. Obi Wan Yoda