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Q1. (a) Derivative markets provide several benefits to the financial ecosystem in terms of financial risk management, price discovery, offering certain operational advantages, and improving

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Q1. (a) Derivative markets provide several benefits to the financial ecosystem in terms of financial risk management, price discovery, offering certain operational advantages, and improving market efficiency. Explain, in detail, how derivative markets offer each of these benefits to the overall financial ecosystem. (24 marks)

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