Abstract
Derivatives are an ancient commercial practice. In the financial world, those products have become essential tools for any professional investor. Asset managers use them in their investment process to take advantage of leverage, reactivity, hedging and low transaction costs. However, the features of these instruments require technical expertise that is not always part of the managers’ background. Derivatives are often feared because they are poorly known and sometimes misused. This chapter reaffirms the importance of futures and options and presents the main uses for risk and performance management. To do so, these instruments are appreciated from the point of view of the investor (real world) and not only valued in terms of fair pricing (risk-neutral world).
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
