> 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 ===== [EMAIL PROTECTED]
