Exposure, Black Swans, and Real OptionsLuis A. Perez-Batres & Len J Treviño
Society has been susceptible to man-made and natural catastrophic events since the beginning of time. A few of the more notable natural disasters include the Antioch earthquake of AD 526, the 1881 Haiphong typhoon, and the more recent 2004 Indian Ocean earthquake and tsunami.[i] Man-made disasters include the great depression, the great credit crisis of…