JOURNAL OF STRATEGIC INNOVATION AND SUSTAINABILITY
Guns and Option Derivatives Are Rights: Two Must Be Analogously Priced
Author(s): Monzurul Hoque, Bruce Lipman, David M. Parker
Citation: Monzurul Hoque, Bruce Lipman, David M. Parker, (2021) "Guns and Option Derivatives Are Rights: Two Must Be Analogously Priced," Journal of Strategic Innovation and Sustainability, Vol. 16, Iss. 3, pp.130-145
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Financial derivatives and guns can be significantly valuable tools. They can also be “weapons of mass destruction” that impose externalities on society. The last few years have demonstrated the need for stricter regulation, particularly regulation concerning risk-taking, in relation to both. In light of those externalities, laws and regulations used to identify, monitor, and mitigate risks are essential and legal intervention to regulate the risk of such externalities is justified. Regulation concerning risk-taking does carry high economic and social costs and should be carefulFinancial derivatives and guns can be significantly valuable tools. They can also be “weapons of mass destruction” that impose externalities on society. The last few years have demonstrated the need for stricter regulation, particularly regulation concerning risk-taking, in relation to both. In light of those externalities, laws and regulations used to identify, monitor, and mitigate risks are essential and legal intervention to regulate the risk of such externalities is justified. Regulation concerning risk-taking does carry high economic and social costs and should be carefully crafted. We posit that both guns and option derivatives are rights and must be appropriately priced to benefit society.ly crafted. We posit that both guns and option derivatives are rights and must be appropriately priced to benefit society.