Abstract
One of the major challenges faced by society in the past few years has been the Y2K computer problem. Briefly, the Y2K problem was created in the early days of computers when programmers used two digits to represent the full four-digit year, e.g., “72” rather than” 1972”. A few years ago it was realized that this abbreviation is ambiguous as we enter the new millennium. “00” for 2000 could also mean “00” for 1900. The two digit ‘years” code may cause many disruptions and severe miscalculations. For example, a bond maturing in 2001 may be registered as if it already expired in 1901.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Best, E., “YK2 and the End of the Great Bull Market,” The International Economy, September/October 1998.
Brenner M. and Galai D., “On Measuring the Risk of Common Stocks Implied by Option Prices: A Note,” Journal of Financial and Quantitative Analysis, Vol. 14, No. 4, pp. 403–412 (1984).
Galai, D., “Inferring Volatility from Options Prices,” Finance, Vol. 12, No. 1, pp. 45–64 (1991).
“Get Ready for’Doom 2000’”.YK2 Survey, The Banker, April 1999.
Goldman Sachs, “Index and Derivatives Perspectives,” a monthly publication of the Equity Derivatives Research, May–September 1999 issues.
Latane, H.A. and Rendleman, R.J., “Standard Deviation of Stock Price Ratios Implied in Option Prices,” Journal of Finance, Vol. 31 (May 1976), pp. 369–381.
“Nothing to Fear But Fear Itself,” The Economist, 9–2729, Editorial.
Swift, C., “Challenge,” Banking Strategies, July/August 1999.
Terrile, J.G., “YK2: Ready or Not?” < Merril Lynch & Co., Global Securities Research & Economics Group.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2001 Springer Science+Business Media New York
About this chapter
Cite this chapter
Brenner, M., Crouhy, M., Galai, D. (2001). The Y2K Enigma. In: Figlewski, S., Levich, R.M. (eds) Risk Management: The State of the Art. The New York University Salomon Center Series on Financial Markets and Institutions, vol 8. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0791-8_9
Download citation
DOI: https://doi.org/10.1007/978-1-4615-0791-8_9
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-5241-9
Online ISBN: 978-1-4615-0791-8
eBook Packages: Springer Book Archive