SUMMARY: Yeh article discuss kar raha ha risk management aur derivation k influences financial crises pe.

Robert merton se interview liya jar aha ha jis ne kafi bara role play kiya ha method of valuing the derivation bnanay mein. Us ko nolbe prize mila tha 20027 mein. Is derivation ki value ajj $500 trillion mark hogye ha. Yeh erticle interview ki form mein ha. Yahan 6 questions dicuss kiye gay hian. Q1)..is mein yeh discuss kiya ha k robert marton ko nai lagta k derivation ka koi khass role ha financial crisis mein wo sifr investment tool ki tarha use kiye jaty hian. Wo yeh b kehta ha k hmein trade-off karna parta ha benefits aur innovation k beech. Hmein innovation ko totally ignore karna pary ga.aur kaha ha k innovation ko baan karna aisa ha jaisay cars ko baan karna global warming ko reduce karnay k liye. Q2)is mein yeh btaya ha k derivation ap ko insight deti ha riskiness of conention banking asset pe. Wo yeh kehta ha k loan k composit asset k 2 part hoty hian. Aik loan and second guarantee.

Donu aik sath risk free assets hian. Wo yeh b kehta ha k loan jin k sath guarantee nai hoti wo b risk free hain q k unki guarantee ap khud dety ho jo loan lety ho.aur yeh b kaha k guarantee k traits putoption k jaisay hain jo k aik widely used security ha. Q3)is mein us ne kaha k derivation experience hmein btata ha un risk k bary mein jo bank ko face karta ha creises k time pe yahan tak k wo laon band karty hian phr b grow karti ha risk.convexity k bary mein btaya ha k jo k option risk ha. Is ka matlab k agar underlying asset ki price kam hoti ha to, to price and risk of putoption or guranteeincreases disproportionately. Q4) is mein yeh smajta ha k log manage nai kar payein gay trouble loans k portfolio ko aur jald se jald unko sell kardain gay jis ki waja se tax payer will lose out. So wo yeh suggestion day raha ha k government aisay sovereign wealth fund establish karain jo managers independentaly run karein ta k government ko puray paiasay milain jb assets ko sell Karin.

Q5) ..is mein wo bta raha ha k hmein changes karni chaye apnay regulatory system mein.yeh changes ahin aisey he likh lena o We should require all the financial

companies to report positions on fair value rather than book basis. o We have to create a central clearing

system for OTC derivatives trading of contracts that can be standardized. o For custom derivatives or for non-

financial firms there should be position limits to prevent these non-centrally cleared contracts from creating a systematic risk. o We would also require that senior

management teams, board members regulators of financial institutions demonstrate adequate understanding of the financial technology and risk management concepts to perform their oversights roles effectively.

Q6)

Is mein who suggest kar raha ha financial

market ki safety hum deployment of another check sytem like NTSB k through kar sakty hian.yeh regolator to nai ha bt is ki finding available hain aur yeh inform karta ha decision of regulator, law makers or industry and public. Ko. Independent regulatory body bnanay se yeh fiada ha k yeh ensure kary ga k jo b regulation bnay ja rahay hain they are best and leastbiased information pe bnay hian.