Question: Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk
Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk prevalent in the system overall. However, derivatives may be effective to "only reallocate and transform the risks". Comment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
