Of liquidity and utility

In Focus

In the same year that Risk was launched, an 18-year-old Harvard University economics student named Kenneth Griffin decided to try his luck in the markets, buying a put option on a stock that a US business magazine article had claimed was overpriced. It proved to be a good trade, but brokerage costs depleted profits and the frustrated student wondered if there was another way that this kind of opportunity could be exploited.

Poring over finance books in Harvard's business school library, Griff