Explain the role of the derivative markets in risk management

Explain the role of the derivative markets in risk management

Share your initial thoughts about the derivative markets and your understanding of the role they play in risk management and information discovery. What existing knowledge of the derivatives market do you bring to this course, and what do you hope to learn more about?

 Review the article of financial derivatives and the CFA Institute: Code of Ethics and Standards of Professional Conduct and address the following:

How did the history of financial derivatives develop? Describe how we use financial derivatives today, and how that purpose has evolved.

In what ways do financial derivatives address specific risks and play a role in risk management?

How does the CFA Institute: Code of Ethics and Standards of Professional Conduct apply to investments in this market?

Within the context of your own development as a financial professional, how do these investments apply to your career interests or goals?

 

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Derivatives Market

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