On 2003-12-05, john hull uttered:

>For some reason, I can't get it straight in my head why the risk-free
>rate of interest would be higher than zero.

The easiest example I know of is, would you be happy saving all of your
income for the next year, without receiving a formidable compensation?
That'd kill you, after all, because eating is consumption. This shows us
that people have at least some urgent desires which aren't interchangeable
with longer term ones.
--
Sampo Syreeni, aka decoy - mailto:[EMAIL PROTECTED], tel:+358-50-5756111
student/math+cs/helsinki university, http://www.iki.fi/~decoy/front
openpgp: 050985C2/025E D175 ABE5 027C 9494 EEB0 E090 8BA9 0509 85C2

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