A Quote by John Hull

There are challenges in terms of the measurement of VAR for what are known as nonlinear derivatives, where things like gamma and vega are important dimensions of the risk.

John Hull

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Challenges Derivatives Dimensions Gamma Important Known Like Measurement Nonlinear Risk Terms Things

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John Hull
Mathematician

One important measurement issue concerns the fat tails problem that I mentioned earlier. VAR is concerned with extreme outcomes. If the tails of the probability distributions we are using are too thin, our VAR measures are likely to be too low.

John Hull

I think the most important thing to understand about credit derivatives and their use at JPMorgan is they served a number of different purposes. First and foremost, they were a tool which initially was seen as being useful in managing the bank's own risk management challenges.

Blythe Masters

Everyone talks about VAR, which is great. It will help the referees no end. But if you've got VAR in place and VAR becomes the ref, I'm not sure that's good for the game.

Steve Clarke

People far too often associate derivatives markets with mere speculation, but there are very legitimate businesses that need derivatives to protect themselves against risk.

Fred Ehrsam

A good starting point [in the measurement of investment risk] is the preservation and enhancement of your purchasing power in real terms.

David Dreman

In an ideal world, one populated by vegetarians and Esperanto speakers, derivatives would be used for one thing only: reducing levels of risk. The list of individual traders who have lost more than a billion dollars at a time betting on derivatives is not short.

John Lanchester

Do we have to regulate derivatives? Yes, we do. 'Cause when I did this in my investments, frankly, no one knew who could pay who. But derivatives have an important place in our economy.

Jeff Greene

The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions... Derivatives have permitted the unbundling of financial risks.

Alan Greenspan

Any measurement must take into account the position of the observer. There is no such thing as measurement absolute, there is only measurement relative.

Jeanette Winterson

Managing risk is a key variable, frankly, all aspects of life, business is just one of them, and one of the things that most people do in terms of managing risk, that's actually bad thinking, is they think they can manage risk to zero. Everything has some risk to it. You know, you drive your car down the street, a drunk driver may hit you. So what you're doing is you're actually trying to get to an acceptable level of risk.

Reid Hoffman

If you have the power to see things through somebody else's eyes, it's like going from black and white to color or two dimensions to three dimensions.

Ray Dalio

I always said that VAR is a very important tool on objective and important decisions.

Massimiliano Allegri

In terms of political things, I think it's important to be more direct in terms of political statements. I think in terms of philosophical and things that you plant things and see them grow lyrically or musically, it's okay to be subtle.

Serj Tankian

At Berkshire, I both initiate and monitor every derivatives contract on our books ... If Berkshire ever gets in trouble, it will be my fault. It will not be because of the misjudgments made by a risk committee or chief risk officer.

Warren Buffett

Machines taking over jobs - it's the history of civilization. Replacing farm animals, old forms of manual labor, now taking over small, menial aspects of cognition. But there's still plenty of room for creativity, for curiosity - many things that are related to passion, like art. But also, things about human communication and challenges, massive challenges that we left behind because we didn't want to take so much risk, such as space exploration, deep ocean exploration.

Garry Kasparov

Monetary calculation is not the calculation, and certainly not the measurement, of value. Its basis is the comparison of the more important and the less important. It is an ordering according to rank, an act of grading (Cuhel), and not an act of measuring. It was a mistake to search for a measure of the value of goods. In the last analysis, economic calculation does not rest on the measurement of values, but on their arrangement in an order of rank.

Ludwig von Mises

A Quote by John Hull

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