The Magic Lever
Donald MacKenzie: How the Banks Do It, 9 May 2013
“... Allowance, or – if you prefer – you could use it to pay for the BBC and throw in the wage bill of the Royal Navy. Unfortunately, Oxera’s method involved questionable assumptions about interest rates and the exact nature of the put option, and further analysis by economists at the Bank of England suggests that the true value of the option (and ... ”