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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Eggolas Moria who wrote (110658)	1/20/2008 10:50:26 PM
From: KPHinds	Respond to of 132070

I haven't followed the financial markets closely for quite awhile, although I did work at a big player who seems to be more advanced than most US co's. That said, to price any instrument accurately, you have to understand the risks(to the extent possible given human limitations, etc. This is an issue, as I saw from my prior job. credit risk on its own is crap). ALSO, TO PRICE ANYTHING, YOU HAVE TO HAVE YOUR OWN INTERNAL ASSUMPTIONS RE RISK-what is your hurdle rate and what are appropriate assumptions. That is a big friggin rub. I've (sorry gotta go....P