Derivatives

The collapse of Long-Term Capital Management (LTCM) in 1998 led to a $4.6 billion loss, exposing risks associated with high leverage and complex financial instruments.

The collapse of Long-Term Capital Management in 1998 highlights the risks of relying solely on complex mathematical models for risk management and the importance of nuanced approaches.

The Rise and Fall of Long-Term Capital Management explores the catastrophic consequences of excessive leverage and the importance of risk management in modern finance.

Derivative pricing models like the Black-Scholes model have transformed finance by accurately valuing complex financial instruments.

This article examines the complexities of housing markets, including depreciation, liquidity, and volatility, to understand why housing prices can fluctuate over time.

Explore how the rise of financialized markets has created a stark divide between those with access to sophisticated risk management tools and those without in the global economy.

The evolution of derivatives from standardized instruments to custom-made over-the-counter contracts has raised concerns about transparency, regulation, and systemic risk in modern finance.

Explore the evolution of derivatives from ancient roots of risk management to modern financial tools, including options, futures, swaps, and more.

Discover how hedging has evolved from ancient Greece to modern times, including its history, key terms, and impact on finance.

The Enron scandal highlights the dangers of unregulated markets and the importance of transparency in corporate finance.