Application And Risk Management On Financial Derivative Instruments

Market of financial derivative instruments is springing up and developing very fast in the last 20 years in the international financial market, and also take a very deep influence. In the developed countries, many kinds of financial instruments and financial derivative instruments can create many new style instruments which can accord with the demand of liquidity and income to compensate for risk-taking to meet the need of customers. Understand and study the application of financial derivative instruments in depth, analyze and strength the administration the risks of financial derivative instruments will have directive function to develop Market of financial derivative instruments in China. The paper consists of five chapters. The chapter outlines the purpose of research of financial derivative instruments, the methodology to be applied and the overall structure of this paper. Chapter first gives the sketches of financial derivative instruments, introduces the origin and developing, main kinds, essential features and major functions. Chapter seocnd explains and analyses the characteristic, functions, application of financial derivative instruments each type specificly and comprehensively Chapter three analyses the risks of financial derivative instruments, which including risk of market, risk of system, risk of liquidity, risk of operation and risk of law. Chapter four analyzes and expounds the means of risk management,...