This quantitatively technical paper extends the work from the paper “The Value of Liquidity”. The Balls in the Hat game is examined in the asymptotic case. It helps to further establish that, from a behavioral finance perspective, humans are wired in such a way that we tend to underestimate the value of liquidity
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.