The Micro Economic Foundation of the Umbrella

Adam is a Managing Director and Global Head of G10 FX Options Trading at Goldman Sachs. Prior to this, he was an FX Volatility Portfolio Manager at PIMCO, and he has worked as a vanilla and exotic FX options trader at Barclays Investment Bank in London. He is the author of Foreign Exchange: Practical Asset Pricing and Macroeconomic Theory (forthcoming, 2022), and Volatility: Practical Options Theory (2018). Adam holds a PhD in financial mathematics and economics from Imperial College London, an MSc in applied mathematics from Oxford University, and an MSci, and BA in physics from Cambridge University. In this podcast we discuss:

Why investors and traders need to understand finance theory, risk premia strategies, and understanding risk premium through umbrellas and rainy weather. We also covered the common risk premia strategies in FX markets, where currency volatility comes from, options markets, rules of thumb for trading options, and when to use options. Finally, on the more personal side, Adam revealed the books that have influenced him the most: Asset Pricing (Cochrane) and End of Alchemy (King).