I am a trustee. I can't make head or tail of P0 = S0N(d1) - Xe-rt N(d2) where Formula and Formula Am I at risk?

Abstract

Co-editor Tony Molloy QC's keynote address to this year's Trusts and Estates Litigation Forum, at Terre Blanche, confronted the problems of financial investments so complex as to preclude any meaningful assessment of the risks associated with them; and of a financial system so lacking in transparency as to have been compounding investment risk under cover of its claims to have been dissipating it. To break open some of the potential consequential trustee investment litigation issues, he found it necessary to traverse finance, economics, sociology, politics and philosophy, as well as to reconsider the leading cases from a number of jurisdictions. As appears from this revised version of his paper, this led to Bernard Madov, lap dancers, centrefold models and the South Sea Bubble jostling with Lord Walker, St Thomas Aquinas, Lord Lindley, Sir Anthony Kenny, Lord Hoffmann (who, having reviewed it in writing his editorial, wrote that he had “very much enjoyed Molloy's article”), Sister Catherine Crowley, Lord Jacobs, the Carmelite Nuns, Lord Nicholls, Pope John XXXIII, Lord Millett, Playboy, the Gospel According to Matthew, Norman Mailer, the Book of Isaiah, the Prime Ministers of Iceland and Australia, alcoholic Telomian Hounds and the personal habits of Mongolian Gerbils: to name but a few.