The fact that the total of derivatives notional amounts is much greater than cash markets should be

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"The fact that the total of derivatives notional amounts is much greater than cash markets should be a major reason for concern. This could cause systemic risk." Discuss this argument. Are notional amounts the appropriate measure of risk?

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Value at Risk The New Benchmark for Managing Financial Risk

ISBN: 978-0071464956

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Authors: Philippe Jorion

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Question Posted: May 03, 2016 02:10 AM

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The fact that the total of derivatives notional amounts is much greater than cash markets should be

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This is incorrect Notional amounts do not reflect th...View the full answer

Value at Risk The New Benchmark for Managing Financial Risk

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