FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk

Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk prevalent in the system overall. However, derivatives may be effective to only reallocate and transform the risks. Comment(200 words)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Talks Explaining How Money Really Works

Money Talks Explaining How Money Really Works

Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer

1st Edition

0691202893, 978-0691202891

More Books

Students also viewed these Finance questions

Question

★★★★★
1. Describe whether your organization is exploitive, impoverished, supportive, or enlightened. 2. Describe the features of your organization that indicate which kind of organization it is. 3....

Answered: 1 week ago

Question

★★★★★
Suppose you are given the following cash flow stream. If the interest rate is 2 0 percent, what is the future value of this cash flow stream at the end of Year 3 ? \ table [ [ Year , CF ] , [ 0 , $ 0

Answered: 1 week ago

Question

★★★★★
Articulate how strategic communication and how people interact with media have changed with artificial intelligence, augmented reality and the Internet of Things.

Answered: 1 week ago

Question

★★★★★
Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as...

Answered: 1 week ago

Question

★★★★★
Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk prevalent in the system overall. However, derivatives...

Answered: 1 week ago

Question

★★★★★
The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Finished goods inventory, beginning Work in process inventory, beginning Raw materials inventory,...

Answered: 1 week ago

Question

★★★★★
Suppose the solute concentration inside the cells of a plant is 0.3M and the concentration outside is 0.2M. Assume that the solute does not readily cross the membrane and that water is the solvent,...

Answered: 1 week ago

Question

★★★★★
2. Extremely successful companies have one overriding common practice; they are: data driven customer-centric aggressive dependable

Answered: 1 week ago

Question

★★★★★
On January 1, 2022, Halstead, Incorporated, purchased 83,000 shares of Sedgwick Company common stock for $1,529,000, giving Halstead 25 percent ownership and the ability to apply significant...

Answered: 1 week ago

Question

★★★★★
1 2 3 4 5 6 EA11. LO 11.4 The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able...

Answered: 1 week ago

Question

★★★★★
Sabor Company uses a perpetual inventory system and the gross method of accounting for purchases. Sabor purchased $17,800 of merchandise on April 7 with credit terms of 1/10, n/30. Merchandise with a...

Answered: 1 week ago

Previous Question Next Question