Wednesday, March 9, 2016

Q&A - 9/3

Jürgen Schmidhuber

[answering the question 'in your eyes, what is the ideal division of work between humans and computers?']  Humans should do zero percent of the hard and boring work, computers the rest.



On the Apple-vs-FBI issue which side are you on?



Apple’s fight with the FBI is one of the most important stories in tech today, as its outcome will have major implications for consumer privacy and safety. But while the FBI is essentially asking Apple to build a backdoor into iOS to unlock the iPhone 5c used by one of the San Bernardino shooters, other spy agencies are claiming they’re actually in favor of strong encryption.

The NSA is one of them and it has repeatedly claimed that strong encryption is required in today’s tech landscape.


Not even NSA is on FBI's side? That is something. 


Can you trade futures contracts on things other than commodities? 


There are futures on currencies, even stock indices. 


Do futures contracts always result in delivery? 


For the  commodity case, whoever ends up with the contract the last does not have to take delivery - both sides can do "cash settlement" paying each other the difference between the buyer's margin and the contract price.

Only 1% of contracts result in delivery. But that does not mean delivery does not take place elsewhere. Boeing can buy a contract on jet fuel, lock a price, then cash settle at the end, but it turns around buys the jet fuel from a local / known / familiar producer. So my conclusion is commodity contracts, their amount, their volume, are always proportional to real commodity trading going on that the contract is based on. 


Ha ha