From: Vincenzo Iozzo <█████████████████████
Sent: Monday, August 18, 2014 6:35 PM
To: jeffrey E.
Cc: Joi Ito
Subject: 'Enforcing' lognormality

And I have another question for you (sorry):

So a lot of the 'classical' pricing models assume lognormality (black schole= etc etc►.But in reality as we all know lognormality is a bit of a pipe dr=am in most cases.

So my question is: would 'provable' lognormality be enough of an incentives f=r traders to pick a new underlying?

I'm not sure yet how to 'enforce' lognormality but I have the gut feeling th=t it must have something to do with the combination of a new currency and 1=nstorable&useful commodities - like oil, electricity etc etc. the intuition here is that since 'a variable can be modeled as log-normal if=it can be thought as the multiplicative product of many ALL positive indepe=dent random variables' and the price of certain commodities is a random var=able that is always positive (the price of electricity, oil, etc etc will n=ver to to zero) then there must be something there

Also cc'ing Joi in case he thought at all about this

Thanks,

Vincenzo

Sent from my (phone

<?xml version=".0" encoding="TF-8"?>
<!DOCTYPE plist PUBLIC "-//Apple//DTD PLIST 1.0//EN" "http://www.apple.com/DTDs/PropertyList-1.0.dtd">
<plist version=".0">
<dict>
<key>conversation-id</key>
<integer>299502</integer>
<key>date-last-viewed</key>
<integer>0</integer>
<key>date-received</key>
<integer>1408386875</integer>
<key>flags</key>
<integer>8590195713</integer>
<key>gmail-label-ids</key>
<array>
<integer>2</integer>
</array>
<key>remote-id</key>
<string>432885</string>
</dict>
</plist>