Risk Management Unit 3 Go to the Office of the Comptroller of the Currency Web site. Find the most recent levels of futures, forwards, options, swaps, and credit derivatives using the following steps:...

Values since 2015 Office of The Comptroller
4
(
Values since 2015 Office of
The
Comptroller

Office of
The
Comptroller
David L.
Whigham
Risk Management

Office of
The
Comptroller
)
Derivatives:
It is a financial instrument which derives the value from an underlying asset. Underlying asset for derivatives are commodities, interest rates, bonds, currencies, stocks and market indexes. There are four types of derivatives in the market. The purpose of derivative is to manage risk in the trading market. There are two main players in the market they are Hedgers and Speculators.
Hedgers:
The owner of underlying assets who wish to transfer the risk of future price fluctuation is known as hedgers.
Speculators:
The risk consumer who holds derivatives based on the prediction of future price movements of an underlying asset is known as Speculators.
Types of Derivatives
Swaps, Future and Forwards, options, Credit and Derivatives.
Future and Forwards
Future and Forward contracts specify that two parties were agreeing to engage in financial transaction at a future date, at a specified price. Future contracts are traded in organized exchange while forward contracts are traded in over the counter market.
Swaps
It is a contract that obligate a party to exchange a series of payment its own or another set of payments owned by the counterparty to the swap. There are two types of swaps they are interest rate and currency swaps. Swaps were used to hedge against risk of interest rate, exchange rate .
Options
Options give the purchaser right, but not an obligation to buy or...