call option

Who is to blame for the current financial crisis?
The dangers of trading derivatives have been well-known ever since they were catapulted into the public eye by the spectacular losses of Nick Leeson and Barings Bank. John Dickson explains what derivatives are, and how they can be both risky, and used to reduce risk.
  • Want facts and want them fast? Our Maths in a minute series explores key mathematical concepts in just a few words.