We could put a lot of nicer groceries up front and hope nobody looks deeper!
But then what happens if someone notices we’re selling a lot of fridges? They could buy insurance on the price of our fridges (options), and that wouldn’t be good because we know the price is going down, that’s why we’re selling them (duh). So we’ll have to sneak all these things out the door and hope nobody looks or notices until we’ve got them all sold.
I guess that’s kind of a rough metaphor, but that stuff all still goes on. The math that tells you when to sell the fridge is where all the real value is.
We could put a lot of nicer groceries up front and hope nobody looks deeper!
But then what happens if someone notices we’re selling a lot of fridges? They could buy insurance on the price of our fridges (options), and that wouldn’t be good because we know the price is going down, that’s why we’re selling them (duh). So we’ll have to sneak all these things out the door and hope nobody looks or notices until we’ve got them all sold.
I guess that’s kind of a rough metaphor, but that stuff all still goes on. The math that tells you when to sell the fridge is where all the real value is.