We all know that the value of a financial asset is the present value of its expected future cash flows, right? This method of valuation was invented by Fibonacci in 1202 to price an annuity. You can show via no-arbitrage that this is correct. Can you show the same for GME?
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Yeah, that’s my point. In fibonacci’s case, for an annuity, there is an arb. For equities and many other things we use this method for, there isn’t one.
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Ah, I’m now concerned that the “this” in “you can show via no arbitrage that this is correct” was unclear. I was referring specifically to Fibonacci’s use in order to contrast it to GME. Is this worth a second tweet clarification I wonder?
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