The Economics Of Financial Derivative Instruments

The phenomenal growth of derivative markets across the globe indicates their impact on the global financial scene. As the securities markets continue to evolve, market participants, investors and regulators are looking at different way in which the risk management and hedging needs of investors may be effectively met through the derivative instruments. However, it is equally recognized that derivative markets present market participates and regulatory (control) issues, which must be adequately addressed if derivative markets are to gain and maintain investor confidence.