Why do businesses most often use derivatives as they can be used as - ProProfs Discuss
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Why do businesses most often use derivatives as they can be used as speculative instruments?



Asked by Kaushalmandalia, Last updated: Jun 23, 2022

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John Smith

John Smith

John Smith
John Smith

Answered Oct 24, 2016

Hedge.

Firms may use forward contracts and futures to protect against currency fluctuations or changes in commodity prices. Interest-rate options help companies control financing costs.
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