EFTA02588318

From: Vincenzo lozzo < Sent: Monday, August 18, 2014 6:35 PM To: jeffrey E. Cc: Joi Ito Subject: 'Enforcing' lognormality And I have another question for you (sorry): So a lot of the 'classical' pricing models assume lognormality (black schole= etc etc►. But in reality as we all know lognormality is a bit of a pipe dr=am in most cases. So my question is: would 'provable' lognormality be enough of an incentives f=r traders to pick a new underlying? I'm not sure yet how to 'enforce' lognormality but I have the gut feeling th=t it must have something to do with the combination of a new currency and 1=nstorable&useful commodities - like oil, electricity etc etc. the intuition here is that since 'a variable can be modeled as log-normal if=it can be thought as the multiplicative product of many ALL positive indepe=dent random variables' and the price of certain commodities is a random var=able that is always positive (the price of electricity, oil, etc etc will n=ver to to zero) then there must be something there Also cc'ing Joi in case he thought at all about this Thanks, Vincenzo Sent from my (phone <?xml version=.0" encoding=TF-8"?> <!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd"> <plist version=.0"> <dict> <key>conversation-idgkey> <integer>299502</integer> <key>date-last-viewed</key> <integer>0</integer> <key>date-received</key> <integer>1408386875</integer> <key>flags</key> <integer>8590195713</integer> <key>gmail-label-ids</key> <array> <integer>2</integer> </array> <key>remote-id</key> <string>432885</string> </dict> </plist> EFTA_R1_01769233 EFTA02588318