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De Koning, who states that the plague began in 1635 and forced the city authorities to take drastic health measures: 38 Chapter 5 These and other precautions could not prevent the progress of the outbreak that caused 5723 to die during August, September, October and November, 1636, so many that the number of graveyards was too small. So great was the misery and sorrow of citizens and inhabitants that the best description would only be a weak image of the great misery of those unhappy days, which is why we will end the story by thanking the almighty God for saving us from this great terror from which our forefathers suffered so much.

To verify the delivery of a specific variety, spot trading in bulbs had to occur immediately after the flowering period, usually in June. Tulips are subject to invasion by a mosaic virus whose important effect, called “breaking,” is to produce remarkable patterns on the flower, some of which are considered beautiful. The pattern imposed on a particular flower cannot be reproduced through seed propagation; seeds will produce bulbs that yield a common flower, since they are unaffected by the virus. These bulbs may themselves eventually “break” at some unknown date but into a pattern that may not be remarkable.

46 Chapter 7 Beckmann (1846, 29) states that the settlement price was “determined by that at which most bargains were made,” presumably at the time of expiration of a given contract. Again, this is the standard practice in current futures markets. Serious and wealthy tulip fanciers who traded regularly in rare varieties did not participate in the new speculative markets. ”12 To the extent that rare bulbs also traded on the futures markets, this implies that no one arbitraged the spot and futures markets.

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Quantitative Methods for Inestment Analysis by Defusco, Mcleavy et al


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