POLY.10.1 on the GLBSE

[TheBitcoinRifleman]

Anyone know how Meni Rosenfield generates profits for this security?

https://glbse.com/asset/view/POLY.10.1

[molecular]

try searching the forum for "poly", it will turn up this:

https://bitcointalk.org/index.php?topic=86069.0

[TheBitcoinRifleman]

try searching the forum for "poly", it will turn up this:

https://bitcointalk.org/index.php?topic=86069.0

Thank you but my question isn't answered there.

[molecular]

try searching the forum for "poly", it will turn up this:

https://bitcointalk.org/index.php?topic=86069.0

Thank you but my question isn't answered there.

I suggest you ask in that thread. Meni will likely answer.

[bitdragon]

One answer was the objective to protect against a downturn in $/BTC and I believe he brings in Fiat from other people.
In the scenario $/btc drops, he limits the drop in fiat thanks to these long poly assets.

Overall, he is testing different mechanisms to hedge and provide the instruments he would like to use himself.

[Meni Rosenfeld]

I responded to TheBitcoinRifleman by PM but only now noticed this thread.

The profit vectors are:
1. The spread between the price I sell the bonds and the price at which I am obligated to buy them.
2. The time value of the money which is in my control for the duration that the bond is outstanding.
3. Another instrument for me to control my BTC position.