S - S Session 2 - Derivatives??!!

SP, out after a big bout of gyan on derivatives, meets Sishya who is just flabbergasted by all this! Pop comes the question!!

Sishya: What on earth makes Financial Derivatives interesting and disgusting at the same time??

SP: Sishya, Have you heard of "circular reference"? Here I use derivatives to state why they are the way they are!!
By design, these Financial Derivatives appeal and don't, simultaneously, because, the problems/questions posed around them are capped on the upside by your creativity and on the other hand, the solutions using these, are capped (or uncapped, to be precise ;), considering that fact that, these very instruments have brought about this second depression!!) only by your stupidity! And the icing on the cake is, "Two things are infinite: the universe and human stupidity; and I'm not sure about the universe." (by Albert Einstein)

The very presence of non-symmetrical pay-offs is what makes Derivatives present 2 views of itself simultaneously!!

Sishya: !!??