Odd Lots: How a Former Physicist Helped Revolutionize Wall Street

A fascinating discussion with a physicist who helped revolutionize Wall Street.

Emanuel Derman, author of "Models. Behaving. Badly: Why Confusing Illusion With Reality Can Lead to Disaster on Wall Street and in Life."

Photographer: Peter Gregoire/Simon and Schuster via Bloomberg
Source: Bloomberg

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Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.

In this week's episode, we speak to Emanuel Derman, one of the pioneers of quantitative finance and the author of the books "My Life as a Quant," "Models. Behaving. Badly." and a forthcoming textbook on option valuation. Derman went from studying physics to Goldman Sachs in 1985 near the dawn of a revolution in how markets traded and assets were valued.

In this week's episode, Derman discusses his career, the changes he witnessed on Wall Street, and what he learned along the way.