Use of Options in Corporate Risk Management- Analysis of Cross- Reference Theory and Practice

Marija Jovanovic

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2012, vol. 58, issue 01

Abstract: This paper research which financial derivative instruments are used by nonfinancial firms, with particular interest in options. Therefore, there are provided a comprehensive evidence on derivatives use collected by the bank of international settlements (BIS), which indicates that financial options account for 15 per cent of global derivatives turnover attributed to nonfinancial firms.A significant number of 15-25 per cent of the firms outside the financial sector use options. Options are very versatile risk management instruments that can be used to hedge various types of exposures, linear as well as nonlinear.

Keywords: Risk; and; Uncertainty (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:288626

DOI: 10.22004/ag.econ.288626

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