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Comment by ben_w

12 hours ago

Trust is something you can give a price to.

The higher the risk of e.g. a loan, the more interest it has to pay out to be worthwhile. The exact amount* is, as I understand it, governed by the Black–Scholes model.

* probably with some spherical-cows-in-a-vacuum assumptions given how the misuse of this model was a factor in the global financial crisis.