Since derivatives markets have become very popular in the last fifty years, history has witnessed many spectacular examples of derivatives misuse which have resulted in large losses for financial and non-financial institutions. For this part of the assignment, you need to do some research. Identify one prominent example of a financial disaster caused by the misuse of derivatives. Explain in your own in detail what went wrong and what was the result of the derivatives misuse.

Furthermore, an investment guru, Warren Buffett, once referred derivatives to as "time bombs" and financial "weapons of mass destruction" . Please comment on his remark. Do you agree with Buffet's opinion?

You need to use some source materials to support your arguments.