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macrocephalopod's profile
macrocephalopod
macrocephalopod
macrocephalopod
@macrocephalopod

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macrocephalopod

@macrocephalopod

Paul Allen, Vice President M&A, Pierce & Pierce (Sie/Hir) | Vegan | Silence is Violence | Women’s Rights Are Human Rights | ACAB (Assigned Cephalopod At Birth)

Joined December 2020

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    1. Mark Gutman‏ @MarkGutman9 26 May 2021

      Wanna hear a counterintuitive but well known secret? Every asset trades at a price such that the expected return is the risk-free rate. If you don’t believe it, try to find someone that will offer you more than the risk free rate. You won’t. Hint: ask for a forward price

      23 replies 1 retweet 56 likes
      Show this thread
    2. macrocephalopod‏ @macrocephalopod 26 May 2021
      Replying to @MarkGutman9

      This is the pure expectations hypothesis, and it is very not true!

      3 replies 0 retweets 26 likes
      macrocephalopod‏ @macrocephalopod 26 May 2021
      Replying to @macrocephalopod @MarkGutman9

      “A long spot/short forward portfolio earns the risk free rate” is true, but very different from “a long spot position earns the risk free rate”.

      2:12 PM - 26 May 2021
      • 22 Likes
      • Foxy Michael Robot James 🤖🏖 Gary James Cush Tho Do IFAPLAN 𝕊𝕖𝕖𝕜𝕚𝕟𝕘𝕃𝕖𝕧𝕖𝕣𝕒𝕘𝕖𝕕𝔹𝕖𝕥𝕒 Ptr Pn CRR
      3 replies 0 retweets 22 likes
        1. macrocephalopod‏ @macrocephalopod 26 May 2021
          Replying to @macrocephalopod @MarkGutman9

          I mean, even “a long spot/short forward portfolio earns the risk free rate” is not true, the proof is the continued existence of fixed income cash and carry trades (or crypto cash and carry if you want to be spicy)

          0 replies 0 retweets 15 likes
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        1. New conversation
        2. Mark Gutman‏ @MarkGutman9 26 May 2021
          Replying to @macrocephalopod

          Yes. Completely agree with that. I didn’t say the latter, though.

          1 reply 0 retweets 0 likes
        3. Adam Goldstein‏ @goldstein_aa 26 May 2021
          Replying to @MarkGutman9 @macrocephalopod

          Sure sounded like you said the latter!

          1 reply 0 retweets 2 likes
        4. Show replies
        1. New conversation
        2. Cat Ears - Scoot‏ @InfoRatioed 26 May 2021
          Replying to @macrocephalopod @MarkGutman9

          exactly, this is an observation about the price of a forward (cost of $) not the price of the underlying (cost of asset).

          1 reply 0 retweets 1 like
        3. Cat Ears - Scoot‏ @InfoRatioed 26 May 2021
          Replying to @InfoRatioed @macrocephalopod @MarkGutman9

          [in which case its phrased wrong and the dunks are worthy]

          0 replies 0 retweets 0 likes
        4. End of conversation

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