1
Introduction
LEARNING OBJECTIVES
After completing this chapter, you will be able to answer the following questions:
- What are derivatives and what are the main uses of derivatives?
- What are forwards, futures, options, and swaps?
- What are risks and how do they affect businesses?
- What are commodity price risks, interest rate risks, and currency risks?
- Why is it important to manage risks?
- What is meant by hedging?
- What are the approaches to risk management?
Derivatives contracts, which have been in existence for more than 2000 years now, started as a way for farmers and merchants to manage the risks of the price of agricultural commodities moving against them. They started off as very simple contracts, and the parties entering into the contract ...
Get Derivatives and Risk Management, 2nd Edition by Pearson now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
