• Emanuel Derman
    Professor, Financial Engineering, Columbia University; Principal, Prisma Capital Partners; Former Head, Quantitative Strategies Group, Equities Division, Goldman Sachs & Co.; Author, My Life As A Quant

  • (top) Spinoza‚Äôs most fundamental affects are pain, pleasure and desire. They lie beneath all the other affects and can be thought of as closer to organic conditions than psychic ones. The more complex emotions bear an indirect link to the three just named.

    (bottom) The Market's Expectation of Future Uncertainty in a Stochastic Volatility Model