Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Derivatives trading has been popular since the futures market for wheat was established. Since then, traders, brokers, and speculators have been nvolved in transactions involving

image text in transcribed

Derivatives trading has been popular since the futures market for wheat was established. Since then, traders, brokers, and speculators have been nvolved in transactions involving derivatives, leading to the evolution of the derivatives markets. Based on your understandives narkets, answer the following questions. generally transfer risk rather than eliminate risk. Which of the following are reasons why the derivatives markets have grown more rapidly than any other major market in recent years? apply. Computers and electronics have made it easier for the markets' counterparties to work with each other. Analytical techniques have been developed that have made it easier to establish fair and transparent prices. After the 2008 financial crisis in the United States, it became legal for institutional investors to participate in the derivatives markets. Globalization has increased both the importance of the currency markets and the need to reduce the exchange rate risks associated with global trade

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

Investing In Fixed Income Securities Understanding The Bond Market

Authors: Gary Strumeyer

1st Edition

0471465127, 9780471465126

More Books

Students also viewed these Finance questions

Question

=+d) How many treatments are involved?

Answered: 1 week ago

Question

List at least three disadvantages to using a consultant.

Answered: 1 week ago

Question

How are arbitrators credentialed?

Answered: 1 week ago