John Hull Quotes

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.

The discussion of derivatives in the political world has become a zero sum game.

We've used derivatives for many, many years. I don't think derivatives are evil, per se, I think they are dangerous.

With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.

I think people have to be very careful with new ideas [in fiancé and economics]. What you need to worry about is when you have something that’s a really good idea, but you get too much of it too fast, like over-the-counter derivatives.

Common hedging techniques include shorting stocks, buying put options, writing call options, and various types of leverage and paired transactions. While I do reserve the right to use these tools if and when appropriate, my firm opinion is that the best hedge is buying an appropriately safe and cheap stock.

Listen to market strategists, and a word that comes up a lot these days is 'volatility.'

I have a quantitative background, but really, derivatives appealed to me because they require so much creativity.

The good thing about a dealer's derivatives portfolio is that it is marked to market.

Market risk is like taking a plunge into a cool pool ... a lot of people are finding out right now what their risk tolerance is.

In our view, derivatives are financial weapons of mass destruction carrying dangers that, while latent, are potentially lethal.

There is no safe haven in today's markets.

I was able to use credit default swaps to protect not only my investments but the hundreds of jobs that exist because of my investment. I understand the dangers of credit default swaps and the benefits of credit default swaps.

Maybe we should teach schoolchildren probability theory and investment risk management.

Life can be lived at a remove. You trade in futures, and then you trade in derivatives of futures. Banks make more money trading derivatives than they do trading actual commodities.

Mark-to-market accounting is like crack. Don't do it.

The global financial crisis - missed by most analysts - shows that most forecasters are poor at pricing in economic/financial risks, let alone geopolitical ones.

My dad used to sell a type of commodity contract. It was so complicated, he was certain his sales people didn't understand what they were selling.

I didn't become interested in derivatives until 1982, 1983.

Different industries have different risks and growth rates and volatility.

Derivatives are a huge, complex issue.

Briefly speaking, our conclusion is that stochastic volatility does not make a huge difference as far as the pricing is concerned if you get the average volatility right. It makes a big difference as far as hedging is concerned.

Derivatives in and of themselves are not evil. There's nothing evil about how they're traded, how they're accounted for, and how they're financed, like any other financial instrument, if done properly.

Trading is very competitive and you have to be able to handle getting your butt kicked.

Markets love volatility.