Economic Themes (2008) 46 (2) 11, 147-170


Anđa Skakavac

Abstract: The paper reviews of the derivative instruments. Specifically, different forms of financial derivatives are inspected, their developement and specific characteristics. Today, financial derivatives make for a powerful tool for risk management and protection for those on the financial market. The derivatives grew popular with the abandonment of fixed exchange rate systems and with the appearance of varying interest rates. The paper reviews the kinds of financial derivatives: futures and options.

Keywords:  financial market; derivatives; futures; options; hedging

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