Author Archives: Dmitri Malinovski

The World of Derivatives, Scratching the Surface

The popularity of the derivatives began in 1970s. Three factors contributed to the derivatives market growth: 1) Higher market volatility due to many governments’ deregulations of the pricing and control of the market, 2) Fisher Black’s and Myron Sholes’ “The pricing of Options and Corporate Liabilities” paper providing methodologies for determining option prices in 1973,

Money Is Gold

In December of 1912, John Pierpont Morgan testified before the Bank and Currency Committee of the House of Representatives in Washington, DC.  During this testimony, Samuel Untermeyer, Attorney for the Committee, asked Mr. Morgan about the basis of banking and specifically the following: “But the basis of banking is credit, it is not?” Mr. Morgan