大二上期末复习江财职协cic2013货银chapter128课件.pptxVIP

Chapter 13 Financial Derivatives 2 Hedging Hedge: engage in a financial transaction that reduces or eliminates risk Basic hedging principle: Hedging risk involves engaging in a financial transaction that offsets a long position by taking a short position, or offsets a short position by taking an additional long position 3 The Basics: Defining Derivatives A derivative is a financial instrument whose value depends on (or is derived from) – the value of some other financial instruments, called the underlying assets. The purpose of derivatives is to transfer ris