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Cake day: October 6th, 2023

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  • The classic non-stock example is the apple farmer. Apple trees take a long time to grow, years before they produce any significant amount of apples.

    Suppose I plant an orchard of the new Awesome Amy Apple trees. I’m betting those will really take off in two years, so they’ll be really profitable. But since these apples are my entire income, and I’d rather not eat an entirely apple-based diet by then, I’m going to hedge my investment. I’m giving up some profit to reduce my risks.

    I’m making a contract to sell half my apples for, say, 20 dollars per bucket. Now, they might be worth 40, but they might also be completely worthless if the Perfect Pete Apple becomes more popular. So I’m giving up some potential profit in exchange for certainty by hedging.

    Another type of hedge would be me planting 75% Awesome Amy, and 25% Perfect Pete. I’m still assuming the alliteration will win the day, but by spreading my investment around, I’m reducing my risk.

    To translate this to the stock market, the first examples would be to buy options for the future. The second example is simply spreading your investments.






  • I’m a HUGE cyberpunk fan, so I made the mistake of buying it at release. Some of my most impressive issues:

    • Trees would draw “on top” or in front of everything else, even when blocked by other objects. So in greener areas, my entire screen was filled with trees.
    • The scripted driving sequences would get me stuck in “driving mode” about half the time after the scripted sequence is over. So I’d be walking around like a car, not able to strafe or jump.

    So, I refunded it, outside of the refund period, but they were nice to me.

    When the expansion released, and everything seemed a LOT better, I bought the game again, and I loved it! It’s a pretty OK game, with a great story and absolutely amazing sidequests.