> 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?
> Sampo Syreeni, aka decoy - mailto:[EMAIL PROTECTED], tel:+358-50-5756111

That does not explain it, because many folks would save SOME of their
income even if the interest rate were zero.
Fred Foldvary


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