THE ROLE OF FINANCIAL DERIVATIVES IN FINANCIAL RISKS MANAGEMENT

نویسندگان

چکیده

Financial derivatives are financial instruments whose price is derived from the basic instruments' prices. They represent derivative created based on existence of primary instruments, such as shares, bonds, stock market indices, or other forms assets. It precisely benefit using that point to their function. The function refers risk protection and reduction exposure some markets, currencies, countries, regions, others. In this case, we talking about for hedging investments currency positions. Those positions taken markets in specific currencies. Likewise, certain entities issue can be replaced reduced reasonable prescribed measures by derivatives. Derivatives offer a significant advantage: risks transferred when they used. Market underlying asset contractually through contract design. Of course, also have disadvantages. For example, there total loss some. research subject paper role derivatives, management. paper, author emphasizes types characteristics benefits, participants may face if use derivates.

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

The Role of Financial Reporting in Reducing Financial Risks in the Market

Increased globalization of financial and product markets has raised the interest of both market participants and regulators in the quality of financial reporting worldwide. The rise in the volatility of stock returns across the globe in the past couple of years has also been a concern. Could greater transparency in financial statement information reduce volatility and produce more accurate stoc...

متن کامل

Global Financial Risks, CVaR and Contagion Management

The September 2008 collapse of Lehman Brothers was the 9/11 on Wall Street, and many articles had been written on the changes in the global risk landscape that followed. However, there is scarcity of rigorous studies using empirical data and advanced econometric methods to verify such a change and the nature of such a change. In this paper, we provide rigorous analyses of statistically signific...

متن کامل

Financial Derivatives

The Merriam-Webster dictionary defi nes a derivative in the fi eld of chemistry as " a substance that can be made from another substance. " Derivatives in fi nance work on the same principle. These fi nancial instruments promise payoffs that are derived from the value of something else, which is called the " underlying. " The underlying is often a fi nancial asset or rate, but it does not have ...

متن کامل

Application of Mathematics in Financial Management

The Time Value of Money is a important concept in Financial Management. The Time Value of Money includes the concepts of future value and discounted value or present value. In the present article, the basic notions and illustrate with their application in the field of investment which is presented in the mathematical terms in form of theorems and we also presented the applications of some well ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

ژورنال

عنوان ژورنال: MEST Journal

سال: 2023

ISSN: ['2334-7058', '2334-7171']

DOI: https://doi.org/10.12709/mest.11.11.01.09