Via Laurent Guerby and Finance VOX is a paper on an options based contract from 1298. In reality it makes sense that the medieval era would develop a financial technology such as this, as so much of the costs of a transaction were unknown.
Options trading is basically where two parties agree to conduct a transaction, within a time period, once certain criteria in the future is met. Since water and horse transport were not so reliable as the transport ships and petrol semi-trailers of the modern economy, it makes sense to have these kinds of contracts.
From the article:
This paper studies a contract signed in 1298 between a famous merchant genois, Benedetto Zaccaria, and two financial genois them-also, Enrico Suppa and Baliano Grillo. This contract is a genuine turn of force. This contract impassioned us and its reading, for it holds some beautiful surprises. In particular, the reader will be able to note how much the options, real or financial, are omnipresent. They constitute the spinal column of the contract and allow him to fulfill the many functions of which the demands of the time needed clearly.Once you get past the 'great man' or 'great dates' telling of history and delve into the day to day lives of the vast majority of those who have made a living on this planet, then you end up amazed at the sheer depth and breadth of human innovation. This is another example.
