Busy is Short Volatility

We’ve talked about:

• Volatility & how it shows up in software development
• What it means to go short or long volatility

Today we’re going to talk about one of the most hidden ways of going short volatility & its counter-intuitive mathematical basis—the Kingman Formula.

The Problem

We’re taking our cue today from queueing theory. In our model of the world we ha…

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