Question: Assessment Task Derivatives are financial instruments that have values derived from other assets like stocks, bonds, or foreign exchange. Derivatives are sometimes used to hedge

Assessment Task Derivatives are financial instruments that have values derived from other assets like stocks, bonds, or foreign exchange. Derivatives are sometimes used to hedge a position (protecting against the risk of an adverse move in an asset) or to speculate on future moves in the underlying instrument. But the derivatives still contain different types of risks. In light of above information, prepare a 2000-word report on market risk and risk management. Your work should discuss the following points: 1. Write an introduction with a proper overview on risks and derivatives 2. Critically discuss the types of Risks Associated with Derivatives 3. Critically explain the economic functions of derivatives 4- Critically discuss the advantages of derivatives 5- Critically evaluate how derivatives minimise the risks 6- Provide conclusion giving summary and your opinion References (200 words) (450 words) (450 words) (350 words) (350 words) (200 words)

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