There is a Lovely discussion on a self-referential bet made by SBF while working at Jane Street. Unfortunately the details matter a lot so I would love to hear from Asher's side. Matt writes plenty of interesting points on this bet in the footnotes. Especially interesting this comment on SBF and Kelly Criterion: https://qoppac.blogspot.com/2022/11/if-youre-so-smart-how-co...
One morning, another intern, called “Asher” in the book, offers to bet Bankman-Fried on the maximum amount any intern will lose that day. “This cannot settle above one hundred or below zero, right?” confirms Bankman-Fried. And then he buys at 65: If any intern loses more than $65 that day, Asher will pay Bankman-Fried that intern’s losses above $65; if none do, Bankman-Fried will pay Asher the difference between $65 and the maximum loss. If an intern loses $100, the maximum, then Bankman-Fried gets $35. If the biggest loser loses only $50, he pays Asher $15. Of course Bankman-Fried can easily win this bet by losing $100 himself.
There is a Lovely discussion on a self-referential bet made by SBF while working at Jane Street. Unfortunately the details matter a lot so I would love to hear from Asher's side. Matt writes plenty of interesting points on this bet in the footnotes. Especially interesting this comment on SBF and Kelly Criterion: https://qoppac.blogspot.com/2022/11/if-youre-so-smart-how-co...