12. This quotation appeared in the December 1988 issue of Euromoney:

The proliferation of futures and options markets has created new opportunities for international investors. It is now possible to change investment exposure from one country to another through the use of derivative instruments, augmented by a limited number of individual securities. Asset allocation in most major markets is now feasible using futures and options.8 Discuss the quotation and the reasons for using derivatives rather than cash instruments to facilitate asset allocation decisions.