The brutal tyranny of the Kingman Formula
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…
