At the end of fiscal year 2013, the level of investment held by U.S.- based businesses and individuals in assets abroad was US$ 21.9 trillion, and the position held by foreign-based counterparties in the U.S. $ 26.5 trillion (B.E.A., 2014). With volumes that exceed 30% of the world GDP (World...

Stock options have been traded in the United States from the late 1700s, and they are based on underlying common stock issues. Options and futures on corporate securities can be evaluated using the firm's common stock price and its volatility rate because this exercise takes in consideration...

Currency derivatives are an important tool to manage foreign exchange risk, hedging. Organizations transacting, investing, or operating in other nations appreciate the possibility of managing currency risk. Investors, financial institutions, and businesses use currency derivatives to complement...

Derivatives are financial instruments used to manage risk. They consist of contractual agreements that establish transactions to be executed at a future date. The value of such transactions derive from the price of underlying assets, such as bonds, stocks, commodities, or currencies, explaining...