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Financial Management of Risks 455

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NOTES

1. Zvi Bodie and Robert C. Merton, Finance(Upper Saddle River, NJ: Prentice-
   Hall, 2000) deserve credit for this perspective on risk management techniques.


2. Fischer Black, who helped invent the model, passed away prior to recognition
   from the Nobel committee.


3. All data referring to equity positions, assets under management, exposure,
   and profits and losses in this section come from Roger Lowenstein, When Genius
   Failed: The Rise and Fall of Long-Term Capital Management(New York: Random
   House, 2000).