The derivatives market is a vital part of financial system and plays a contributing role in many
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Question:
The derivatives market is a vital part of financial system and plays a contributing role in many aspects of an economy. A well-functioning derivatives market makes it possible for firms to share risks efficiently and allows them to conduct projects with relatively higher risk and consequently to boost the economic growth.
Explain how derivatives market can help firms to share risk and invest in projects with relatively higher risk.
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