Using Table 25.10, discuss the main concerns of corporations when using derivatives to manage risk.

Table 25.10

Transcribed Image Text:

Australia Germany United Kingdom United States United States and Canada Europe Asia & Pacific Africa/Middle East OECD Non-OECD Non-US Number of Firms 305 413 886 2,231 2,830 2,530 1,743 127 6,133 1,186 5,088 All Types of Derivatives 66.6 47.0 64.2 64.9 63.8 61.4 51.2 78.0 64.3 39.6 58.3 Foreign Exchange Derivatives 51.5 39.2 54.5 37.7 39.3 50.9 44.1 74.8 47.3 34.6 48.5 Interest Rate Derivatives 42.3 24.2 36.6 40.4 37.6 32.4 27.3 22.0 37.4 10.8 29.9 Commodity Price Derivatives 14.1 4.6 3.8 16.3 16.8 5.0 6.0 7.9 11.4 3.0 7.3