The role of financial derivatives in enhancing the banking institutions under the rising of prices of US dollar

Abstract

The value of financial derivatives contracts is determined by the value of a certain asset or commodities money market instrument. To maximize the return on his investment portfolio or to cover risks, an experienced investor would typically use derivatives. Options, forward, and future contracts are the most frequent derivatives. It is often regarded as the most divisive and complex financial issue. At the macro level, it is impossible to count the good and negative effects it has on economic activity. It is also one of the financial instruments that arose from financial philosophy and is utilized in stock exchanges.