anyone have ideas of derivative.

2008-10-10 10:24 am

any ideas for this topic:

There is a view that the derivative markets in general are nothing more than
gambling casinos and serve no economic function. Do you agree or disagree?

更新1:

---any further ideas for agree and for disagree. thx.

回答 (1)

bwkchang

2008-10-11 3:34 am

✔ 最佳答案

Disagree.
Derivative market provides a mean to investors to hedge their risks. For example, if an investor holds JPY and he worries about JPY exchange rate will fall in next month. He may enters into a derivative to hedge the exchange rate risk.
However, there are a lot of people that they do not have the needs of hedging but participate in derivative markets. They are treating derivative markets as casino. Nonetheless, we cannot let their behavior to downgrade the values of derivative market.

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