If Jackwerth is right, and options are indeed mispriced, this is a striking finding: participants in one of high modernity's most sophisticated markets have been behaving irrationally. Such a conclusion, however, seems to me to involve too narrow a view of rationality. Because of the limited wider effects of the 1987 crash, it is hard now to recapture just how traumatic it was to those most centrally involved. The arbitrageur Eric Rosenfeld, then at the investment bank Salomon Brothers, recalls "sitting at the [trading] desk and wondering about the end of the whole financial system" (quoted in Dunbar 2000, p. 97).

Donald MacKenzie, An Engine, Not a Camera, loc. 915