Friday, October 25, 2013

600 BC - Olive Press Call Options?

Usually regarded as new risk management tools developed by financial engineers, derivatives have been part of our financial landscape for literally thousands of years.  Aristotle is credited with recording the first use of call options in Book One, Part XI of Politics, written in 350 BC.  To illustrate the art of accumulating wealth, Aristotle recounts the anecdote of Thales of Miletus (620-546 BC).

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