[20190108]IF10117_金融服务简介：衍生产品.pdf

https:/crsreports.congress.gov Updated January 8, 2019Introduction to Financial Services: DerivativesBackground A derivative is a contract that derives its value from some underlying asset at a designated point in time. For example, the derivative may be tied to a physical commodity (such as cattle, wheat, or oil), a stock index, or an interest rate. Derivatives prices fluctuate as the underlying assets rates or expected future prices change, and neither a derivatives buyer nor seller need necessarily own the underlying asset. Derivatives come in several different forms, including futures, options, and swaps. Many firms use derivatives to manage risk. For example, a firm can protect itself against increases in the price of a commodity that it uses by entering into a derivative contract that will gain value if the price of the commodity rises. A notable instance of this type of hedging strategy was a derivatives position taken by Southwest Airlines that allowed it to buy jet fuel at a low fixed price in 2008 even as energy prices reached record highs. When used to hedge risk, derivatives can protect businesses (and sometimes their customers as well) from unfavorable price shocks. O