Attempts: Keep the Highest: 76 2. Background on derivatives Aa Aa E Derivatives trading has been popular since the futures market for wheat was established. Since then, traders, brokers, and speculators have been involved in transactions involving derivatives, leading to the evolution of the derivatives markets. Based on your understanding of the derivatives markets, answer the following questions. Derivatives markets are volatile by nature, so the risk to speculators is high. Since speculators bear the risk, the derivatives markets become less stable for hedgers. generally transfer risk rather than eliminate risk. Which of the following are reasons why the derivatives markets have grown more rapidly than any other major market in recent years? Check all that apply. O Globalization has increased both the importance of the currency markets and the need to reduce the exchange rate risks associated with global trade. Analytical techniques have been developed that have made it easier to establish fair and transparent prices. After the 2008 financial crisis in the United States, it became legal for institutional investors to participate in the derivatives markets. O Computers and electronics have made it easier for the markets' counterparties to work with each other