Question: Everything else being equal, which would be more valuable to you a derivative instrument whose value is derived from an underlying instrument with a

Everything else being equal, which would be more valuable to you – a derivative instrument whose value is derived from an underlying instrument with a very volatile price history or one derived from an underlying instrument with a very stable price history? Explain your choice.

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The primary use of derivatives is to transfer risk from one party to another The more volatile t... View full answer

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