Forward, futures, and option contracts had been used by FIs to hedge risk for many years before

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Forward, futures, and option contracts had been used by FIs to hedge risk for many years before swaps were invented. If FIs already had these hedging instruments, why did they need swaps?

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Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

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Question Posted: Dec 17, 2015 05:14 AM

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Forward, futures, and option contracts had been used by FIs to hedge risk for many years before

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Although similar in many ways the following distinguishing characteristics cause the instruments to ...View the full answer

Financial Institutions Management A Risk Management Approach

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