IE Business School invites you to live the IE experience in real-time with a member of our world-class faculty. Enjoy a case discussion with Prof. Gamaliel Martinez, Professor of Operation Management with more than 20 years of experience in consulting in industries like Shipbuilding, Automative, Agrofood, Pharma. You can actively participate debating about the general…

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IE Business School invites you to live the IE experience in real-time with a member of our world-class faculty. Enjoy a case discussion with Prof. Gamaliel Martinez, Professor of Operation Management with more than 20 years of experience in consulting in industries like Shipbuilding, Automative, Agrofood, Pharma. You can actively participate debating about the general…

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Students from IE Business School, Universidad Complutense de Madrid and Hamline University have won the second edition of JPMorganâ??s Good Venture Competition. The competition focuses on developing philanthropic non-profit organisations. This year 77 socially responsible teams from 48 universities and business schools pitched for $25,000 of direct funding from JPMorgan. Ultimately nine teams were selected…

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FUND MANAGEMENT: Real life gets in the way of BSM certainty

The following article was published in Financial Times on December 10, 2007 and written by Pablo Triana, Director of  the Centre for Advanced Finance at IE. If you wish to learn more about our finance related programs, please visit http://www.miaf.ie.edu/.

The recent debate on the Black-Scholes-Merton options pricing model continues to make waves. Research by veteran option traders and authors Nassim Taleb and Espen Haug claims that BSM was not really an original invention, that its real-world popularity has been greatly exaggerated, and that there may be no mathematical models behind option prices, with simple supply-demand interaction claiming authorship instead.
Such bold statements, while a welcome contribution to the search for truth, may deprive us of something that seemed valuable. BSM, for all its flaws, offered quantifiable light where before there was only unknown darkness. By “losing” BSM, we would lose such certainty, albeit misplaced.
The most obvious certainty that the model offered was a precise number for the value of an option. This it did in a quite ingenious way. Everyone would tell you that an option should cost money because it gives you the right to enjoy a potentially large pay-out while limiting the possible losses if things do not go your way. But who ensures that that right has value per se? That value is supposed to come from the probability assigned to the option expiring in-the-money. So who guarantees that the probability of making money on the option is non-zero? Who can honestly claim to know the exact distribution governing financial assets? Pricing options based simply on probabilistic assumptions sounds a bit fishy.

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Thanks to China Economic Review saying “we are VERY MUCH INTERNATIONAL in spite of Spanish origin”

12月4日China Economic Review发表了题为FT puts IE Business School at No. 5 in Europe 的文章。 值得一提的是,文章强调IE商学院虽然发源于西班牙,但却是一所非常国际化的商学院,教学机制和运作与北美商学院类似。作为IE的校友,对这位老记第一次这么大声地在中国媒体为在西班牙的IIE挣“international”的名份,惊喜之情难以言表。 以下是全文,以飨诸君。 IE Business School (the IE stands for Instituto de Empresa showing its Spanish origin but it is very much a Business School in the American tradition) is ranked No. 5 in Europe and No. 1 in Spain in the latest…

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Dual Degree in Logistics with MIT

In todayâ??s business environment, companies must produce innovative products at a low cost and effectively deliver them to customers around the world. Globalization has driven supply chain management and logistics to the forefront of business strategy and created the need for a new kind of business leader. In recognition of this development, IE Business School…

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李安《色·戒》:彰显人性的力量


Ang Lee’s new film, an espionage thriller set in WWII-era Shanghai. Tony Leung stars as Mr. Yee, a powerful political figure in 1940s Shanghai. Tang Wei, makes her feature film debut as Wang Jiazhi, a young woman who gets swept up in a dangerous game of emotional intrigue with Mr. Yee.
看了一些对李安新作《色·戒》的访谈,除了对那些老拿几段性爱描写说事的炒作苦笑外,到还是有几分惊喜。第一,终于有很多很多人要跟广播电视总局闹“分级制”了;第二,导演的观点--“情感超越理智彰显了人性”--尤其在这部影片中对“女人对一个不该爱的男人的情欲”超越了“爱国主义”的充满同情和近乎唯美的演绎,居然在国内媒体上得到很大的声援。还不知道马德里什么时候播,但是一定回去看正版,呵呵。