Analysis/Application I think that this analysis shows that it is necessary to understand why a specific derivative was chosen-what it is expected to accomplish-, and that it is important to understand the risk associated with derivative, and when a change in that risk presents an ethical problem. It is important to pay attention to topics like: avoidance of systemic risk, distinguishing risk- generating from risk-dispersing instruments, and transparency through oversight (Heinemann. 2011. P.55). These topics cover micro- and macro- ethical issues that could become a problem when dealing with derivatives any type. Avoidance of systemic risk would deal with any potential macro-ethical issues and means monitoring the financial system. Distinguishing risk- generating from risk-dispersing instruments puts a focus on institutional regulation in order to