From: Vincenzo lozzo
Sent: Sunday, August 17, 2014 1:02 PM
To: Jeffrey E.
Subject: Re: Taxes

Can you let me know if you are? I'd be=helpful if we can meet up - I'm trying to look at derivatives through my le=s.

What is somewhat striking is that it seem= like all they are is a programming language whose goal is to minimize risk= (with the side effect of creating arbitrage and speculation opportunities)=

What I am is if you interpret trading as an=optimization problem of: given a belief(stock X will outperform the market,=etc etc) maximize returns and minimize risks. Then all derivatives are is '=unctions' to go from a risky bet to a less risky one - now you can go to ri=kier ones but that's an 'anomaly'

Anyhow if t=is parallel somehow holds there are interesting questions that come up, for=example: what is a Turing machine in this world? Which would be a fancy way=to answer the questions: what derivatives are missing? Also since you can s=ack up multiple 'functions' (eg: combine a forward with an interest float-t=-fixed swap to make a riskless arbitrage) that leads to complexity and henc= to bugs

But I'm not sure if this is me goin= insane/trying to forcefully fit one thing into the other or if there's act=ally something there

One of the reason why meeting=up would be useful :-)

Sent from my (phone

On 17/ago/2014, at 08:47, "jeffrey E." <jeevacation@gmail.com> wrote:

<=lockquote type="cite">
not sure yet

<table></table>

That makes sense - do y=u happen to be in town any day from today to Wednesday?

Sent f=om my 1phone

On 16/ago/2014, at 16:41, "jeffrey E." <jeevacation@gmail.com&g=; wrote:

taxes are variable friciton

wrote:

So quick question for you: are taxes a trick?<=r> Here's what I mean, I think (gut feeling - no proof) that there are potentia=ly a number of arbitrage/risk-free opportunities that are not tackled by an=body because when you add in taxes you don't actually make money.

Is 'hacking' taxes a strategy? It seems like all the academic texts leave th=t part for the reader which makes me think there's something there.

Also I was reading a while ago that rentech was using a weird structure with=Credit Suisse (iirc) where they were taxed on their profits as if it w=s long-term capital gains instead of short-term.

Sent from my (phone

&=bsp; please note

The information cont=ined in this communication is confidential, may be attorney-client privi=eged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE

Unauthorized use, d=sclosure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you have received this communicat=on in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication an= all copies thereof, including all attachments. copyright -all rights re=erved

please note
=div>The information contained in this communication is confidential, may=be attorney-client privileged, may constitute inside information, and is intended only for the use of the ad=ressee. It is the property of JEE Unauthorized use, disclosure or cop=ing of this communication or any part thereof is strictly prohibited =and may be unlawful. If you have

received this communication in error, pl=ase notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and=br> destroy this communication and all copies thereof, including all attachme=ts. copyright -all rights reserved