Date Added: Jul 2010
It is important to acknowledge that financial markets serve a fundamental role in economic growth of nations by helping efficient allocation of investment of individuals to the most productive sectors of the economy. They also provide an avenue for corporates to raise capital for productive ventures. Financial sector has seen enormous growth over the past thirty years in the developed world. This growth has been led by the innovations in products referred to as financial derivatives that require great deal of mathematical sophistication and ingenuity in pricing and in creating an insurance or hedge against associated risks.