EFTA02391339.pdf

From: Vincenzo lozzo Sent: Sunday, August 17, 2014 1:02 PM To: Jeffrey E. Subject: Re: Taxes Can you let me know if you are? I'd be=helpful if we can meet up - I'm trying to look at derivatives through my le=s. What is somewhat striking is that it seem= like all they are is a programming language whose goal is to minimize risk= (with the side effect of creating arbitrage and speculation opportunities)= What I am is if you interpret trading as an=optimization problem of: given a belief(stock X will outperform the market,=etc etc) maximize returns and minimize risks. Then all derivatives are is '=unctions' to go from a risky bet to a less risky one - now you can go to ri=kier ones but that's an 'anomaly' Anyhow if t=is parallel somehow holds there are interesting questions that come up, for=example: what is a Turing machine in this world? Which would be a fancy way=to answer the questions: what derivatives are missing? Also since you can s=ack up multiple 'functions' (eg: combine a forward with an interest float-t=-fixed swap to make a riskless arbitrage) that leads to complexity and henc= to bugs But I'm not sure if this is me goin= insane/trying to forcefully fit one thing into the other or if there's act=ally something there One of the reason why meeting=up would be useful :-) Sent from my (phone On 17/ago/2014, at 08:47, "jeffrey E." <[email protected]> wrote: <=lockquote type="cite"> not sure yet On Sun, Aug 17, 2014 a= 8:36 AM, Vincenzo lozzo rote: That makes sense - do y=u happen to be in town any day from today to Wednesday? Sent f=om my 1phone On 16/ago/2014, at 16:41, "jeffrey E." <[email protected]&g=; wrote: taxes are variable friciton EFTA_R1_01417317 EFTA02391339  On Sat, Aug 16, 2014 at 4:36 PM, Vincenzo lozz wrote: So quick question for you: are taxes a trick?<=r> Here's what I mean, I think (gut feeling - no proof) that there are potentia=ly a number of arbitrage/risk-free opportunities that are not tackled by an=body because when you add in taxes you don't actually make money. Is 'hacking' taxes a strategy? It seems like all the academic texts leave th=t part for the reader which makes me think there's something there. Also I was reading a while ago that rentech was using a weird structure with=Credit Suisse (iirc) where they were taxed on their profits as if it w=s long-term capital gains instead of short-term. Sent from my (phone &=bsp; please note The information cont=ined in this communication is confidential, may be attorney-client privi=eged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, d=sclosure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communicat=on in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights re=erved please note =div>The information contained in this communication is confidential, may=be attorney-client privileged, may constitute inside information, and is intended only for the use of the ad=ressee. It is the property of JEE Unauthorized use, disclosure or cop=ing of this communication or any part thereof is strictly prohibited =and may be unlawful. If you have 2 EFTA_R1_01417318 EFTA02391340 received this communication in error, pl=ase notify us immediately by return e-mail or by e-mail to [email protected], and=br> destroy this communication and all copies thereof, including all attachme=ts. copyright -all rights reserved 3 EFTA_R1_01417319 EFTA02391341