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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