DERIVATIVE SECURITIES RESEARCH PAPER
Derivative securities are a result of financial innovation and their value is dependent upon the value of an underlying security. They are also called contingent claims since their value is contingent upon the value of another security. The most important use of derivatives is risk-reduction, called hedging. Derivatives "hedging," is based on the idea that the change in the value of a derivatives position can offset the change in the value of the underlying asset .
…
Is this Essay helpful? Join now to read this particular paper
and access over 480,000 just like this GET BETTER GRADES
and access over 480,000 just like this GET BETTER GRADES
…No. 4. (Sep., 1997), pp. 1323-1354.
Stable URL: http://links.jstor.org/sici?sici=0022-1082%28199709%2952%3A4%3C1323%3AWFUCD%3E2.0.CO%3B2-I
On the Determinants of Corporate Hedging (in Shorter Papers)
Deana R. Nance; Clifford W. Smith, Jr.; Charles W. Smithson
The Journal of Finance, Vol. 48, No. 1. (Mar., 1993), pp. 267-284.
Stable URL: http://links.jstor.org/sici?sici=0022-1082%28199303%2948%3A1%3C267%3AOTDOCH%3E2.0.CO%3B2-0
Mark Brinblatt, Financial Markets and Corporate Strategy (New York; McGraw Hill, 2002)
Need a custom written paper? Let our professional writers save your time.
Not a member yet?
