My brother might know the answer to this. I’ll ask him and get back to you.
Slightly off-topic, here’s a “fun” financial puzzle for you:
John Smith is in trouble. You see, he has liquid assets worth $500,000. Normally, that wouldn’t be a bad thing, but John Smith owes Tony Soprano $1,000,000, and the loan comes due in exactly one year from today. If he doesn’t pay up, and in full, Tony is going to have him whacked.
John Smith figures that, in a worst case scenario, he could take his $500,000 to Vegas, bet it all on red on a single roulette wheel spin, and have a nearly 50% chance of paying off his debt. (He’ll worry about the IRS after he pays off Tony.)
You’re John Smith’s broker. Can you come up with a better investment strategy for John Smith and his $500,000?
You can use a binary option and probably do better than the 3% spread at the roulette table. Having said that, I don’t know of any exchanges with the instrument you’re looking for, so you’d probably have to go OTC for the instrument and maybe pay a broker’s commission + prop desk spread, so you wouldn’t save too much. Bear in mind you don’t need the full $1mm—you only need $1m/annual interest rate.
My brother might know the answer to this. I’ll ask him and get back to you.
Slightly off-topic, here’s a “fun” financial puzzle for you:
John Smith is in trouble. You see, he has liquid assets worth $500,000. Normally, that wouldn’t be a bad thing, but John Smith owes Tony Soprano $1,000,000, and the loan comes due in exactly one year from today. If he doesn’t pay up, and in full, Tony is going to have him whacked.
John Smith figures that, in a worst case scenario, he could take his $500,000 to Vegas, bet it all on red on a single roulette wheel spin, and have a nearly 50% chance of paying off his debt. (He’ll worry about the IRS after he pays off Tony.)
You’re John Smith’s broker. Can you come up with a better investment strategy for John Smith and his $500,000?
You can use a binary option and probably do better than the 3% spread at the roulette table. Having said that, I don’t know of any exchanges with the instrument you’re looking for, so you’d probably have to go OTC for the instrument and maybe pay a broker’s commission + prop desk spread, so you wouldn’t save too much. Bear in mind you don’t need the full $1mm—you only need $1m/annual interest rate.