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Derivatives
Essay specific features
Written by:
Maria S
Date added:
August 12, 2016
Level:
University
Grade:
A
No of pages / words:
14 / 3829
Was viewed:
6654 times
Rating of current essay:
Essay content:
The main types of derivatives are futures, forwards, options and swaps.
Derivative instruments are used as financial management tools to enhance investment returns and to manage such risks relative to interest rates, exchange rates, and financial instrument and commodity prices. Several local and international banks, businesses, municipalities, and others have experienced significant losses with the use of derivatives...
displayed 300 characters
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Several local and international banks, businesses, municipalities, and others have experienced significant losses with the use of derivatives. However, their use has increased as efforts to control risk in complex situations are perceived to be wise strategic decisions.
The main use of derivatives is to minimize risk for one party while offering the potential for a high return (at increased risk) to another...
displayed 300 characters
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