. .. This is a graded discussion: 10 points possible due - Week 4: Discussion: 4.2: Derivatives and Decision Making 8 8 As we've been exploring, the mathematical concepts in this course are important in numerous professional contexts. In your initial post for this discussion, describe how a local government could use derivatives to aid in decision making. When responding to your classmates, compare and contrast the different scenarios outlined and highlight some of the applications that surprised you. For general instructions about content discussions in this course, see the Discussions in this Course item in the Course Information section. Q Search entries or author Unread Subscribed Reply O Sheldon Todd Preisler . . . Jan 24, 2024 Derivatives can be very important tools for local governments in the ways of interest rate management tools, which can provide a governmental entity financial flexibility, opportunities for interest rate savings, alter the pattern of debt service payments, create variable rate exposure, or change variable rate payments to fixed rate and otherwise limit or hedge variable rate payments. Using derivatives will help the local government get better rates for bonds and loans. While this is a good tool for the local government to use there is also risk in using derivatives as governments will lose money using derivatives if there is a financial crisis and the finance sector of a government should be careful when using derivatives