Table of Contents Preview

Preface to the New York Art Book Edition

Preamble

Black Scholes Merton is Degenerate Science

The Audacity of Logic Summarized

Introduction

My Time in New York City
My Time at Princeton
After Princeton: Artistic literary note
Great Expectations
Diving Right In
The Financial Arrow of Time
The Continuums of Financial Time
Pulling back from Infinite Time
(ARTWORK: Financial Time = ?; The Foreverland Guarantee)
End of Introduction
My Challenge to the Top Brass of the Black Scholes Merton Regime
(ARTWORK: The Allure of Innovation: Art & Science; REAL PRICES: The Power of Price Discovery)

Chapter 1 - Financial Heretics at the Stake

(ARTWORK: The Messenger)

A Philadelphia Story
(ARTWORK: Infinite Rocky; Infinite Joan of Arc)

Chapter 2 - The Beginning of Truth About Financial Time

The Injection of Infinite Time into Financial Theory: The Black Scholes Merton Financial Regime
(ARTWORK: The Corrected Tablets of Modern Finance)
Physics vs. Economics and Theory vs. Empiricism
(ARTWORK: TODAY: The Physics of Wall Street)
Liar’s Poker? or, Liars, Jokers?
In Economics There Are Large Mistakes. Look Around.
The World is ‘Flound’
(ARTWORK: YESTERDAY: The Beginning of Financial Truth)
The Beginning of Financial Truth
(ARTWORK: SCHUMPY)

A Financial Hit Man-in-Beirut Story

A Philadelphia Story
(ARTWORK: BEN @ PENN: Never Leave That Til Tomorrow Which You Can Do Today; Infinity Wall)

Chapter 3 - Mr. Merton, Tear Down This Wall!

It’s All About Time Value
Financial Zealots at the Stake
BSM is the Berlin Wall of Financial Truth
Infinite Time and Intellectual Rigor
(ARTWORK: Rigorometer)
A Draft Patent Application – The Rigorometer

A Nobel Story

A Philadelphia Story

Chapter 4 - INFINITY & THE ART OF CREATIVE DESTRUCTION: An Analysis of The Corrected Tablets of Modern Finance

(ARTWORK: The Corrected Tablets of Modern Finance)
The Corrected Tablets of Modern Finance
Corrected Tablet I
(ARTWORK: Feeble Footnote I: 1965)
Corrected Tablet II
(ARTWORK: Feeble Footnote II: 1969)
Corrected Tablet III
(ARTWORK: Feeble Footnote IIIa: 1973)
Corrected Tablet IV
(ARTWORK: Feeble Footnote IIIb: 1973)
Corrected Tablet V
(ARTWORK: Praise & Mutual Admiration for the self-fulfilling BSM Reign of Error!)
The Mini-Tablet
(ARTWORK: The Infinity Tack Pack)
Meditations on Financial Infinity
The Continuum of Infinity in Human Knowledge
(ARTWORK: The Contemplation Pillows)

A New York Story

A Philadelphia Story

Chapter 5 - 40 Years of Empirical Solitude

(CHART: Empirical Prices for Perpetual Warrants)
(GRAPH: Boundary with Empirical Prices for Perpetual Warrants)
(ARTWORK: The Castration of X – OUCH!)
(ARTWORK: The Master Re-Empowered)
Games Elites Play
(ARTWORK: INFINITE LIFE?: Awakening to Financial Truth)
It’s 4pm. Have you changed your holding period today?

A New York Story

A Philadelphia Story

Chapter 6 - THE XPO PRICE FRONTIER - The True Upper Boundary

(GRAPH: Boundary with Empirical Prices for Perpetual Warrants)
Expirationless Options vs. Perpetual Warrants
(GRAPH: XPO Price Frontier as The True Upper Arbitrage Boundary)
Derivatives Must Learn to Love Their Mother
(ARTWORK: The Wrong Mother)
(GRAPH: Bachelier-Style Normal Price Distribution Curve with Shaded Sub-Zero Left Tail)
(ARTWORK: Le Premier Intervenant/The First Responder: Bachelier)
So, Why Did They Fudge It?
(ARTWORK: REAL PRICES: The Power of Price Discovery)
A Little Cognitive Behavioral Therapy Would Help

A New York Story

A Philadelphia Story
(ARTWORK: The Little Tacker)

Chapter 7 - THE INFINITY TAX: Estimating the High Cost of Fudge in Foreverland

Estimating The Infinity Tax
Visualizing The Infinity Tax
(GRAPHS: Different Scenarios for Estimating The Infinity Tax)
The Role of Time and Space in Economic Pricing
(ARTWORK: The Navigator)
Rigorous Arbitrage Will Eliminate The Infinity Tax
The Zero-Cost Takeover Paradox
The Share Buyback Paradox
The Fiduciary Paradox I: Capital Markets
The Fiduciary Paradox II: Initial Public Offerings
The Paradox of Rational Investors – The Irrationality of 100%
The Audacity of Logic – The lack of rigor in contemporary arbitrage
The External Destruction of BSM: The misuse of physics in finance
(ARTWORK: TOMORROW: The Wall Street of Physics)
The Internal Destruction of BSM: The misuse of finance in finance
(ARTWORK: Bad Physics on Good Physics: t.Rutt’s Original Tesla)
Love in the Time of Tesla
The Physics of Substance Abuse
Is the BSM Regime an Addiction?
(ARTWORK: The Enforcer)
The False Shadow of Infinity
The Sex of Infinity
Time in the Time of Cholera

A Crimson Tale

Detail of The Washings and Installation Shots

A Philadelphia Story
(ARTWORK: The Well-Endowed Comfy Chair)

Chapter 8 - INFINITY & The Atrocities Against Financial Innovation at Harvard Business School, or: As t → ∞, H=BS.

(ARTWORK: Praise & Mutual Admiration for the self-fulfilling BSM Reign of Error!)
Jaffee/Lerner Fallacy #1
Jaffee/Lerner Fallacy #2
Jaffee/Lerner Fallacy #3
Jaffee/Lerner Fallacy #4
Jaffee/Lerner Fallacy #5
Jaffee/Lerner Fallacies Summarized
Why Did Jaffee and Lerner Do It?
(ARTWORK: The Kenyan Weavings)

An Innovator’s Story

A Philadelphia Story
(ARTWORK: Arb This!)

Chapter 9 - “Chop, Chop People. It’s show time!” – The Financial Infinity Challenge

Announcing: The Financial Infinity Challenge
The Salt Cave Award
The Light Speed Award

A Nobel Story

A Philadelphia Story
(ARTWORK: Foreverland Fudge Flusher)

Chapter 10 - t.Rutt Throws Down the Gauntlet

(ARTWORK: Excitable Technicolor Boys)
A quick note about romance, adolescence and the liberal arts

A New Yorker-in-Miami Story
(ARTWORK:  Fountain of Youth – !Viva Marcel!)

EPILOGUE

Preview of Book II

Bibliography

Names of Future Chapters in Book II

Chapter _: Tier 1 Bank Recaps Made Easy
Chapter _: New Tools for Central Bank Maneuvers (aka: A Painless Way to Print & Unprint Money)
Chapter _: IPO & XPO, Perfect Together
Chapter _: The True Shape of Financial Arbitrage and Why the Fed and U.S. Treasury are on the Right Track with Floating Rate Debt
Chapter_: It’s the equity, stupid!
Chapter _: The Free Lunch That Can Save Europe and Recapitalize the World

Unfinished Notes for Future Chapters

Memo to the Presidents
Background
t.Rutt’s Challenge to the Status Quo
Impact on Financial Innovation
Financial Price Genetics
The View from 10,000 Feet

Chapter __ Reading the Shape of Things to Come: Introducing the TIX™ & The Financial HOPE Ratio™

The Importance and The Reality of Time Flexibility of Expirationless Assets
The Enabling Logic Behind HOPE Ratios™

Infinity, Physics, & The Rational Immediacy of Human Experience
The Long Run is Dead! Long Live the Long Run!
The Fallacy of Discounting an Infinite Number of Future Holding Periods
Scientists Dismissing Infinity
Infinity, Physics, Evidence, & Time
The Physics and Rational Immediacy of Tennis & Golf
The Discontinuity of Housing Prices
The Discontinuity of Urinal Prices
The True Manufacturers of Options
A quick jag re: restoration among artists
Wall Street Workers
Blood & Money