Derivative fear

It is happening again. The typical response of policy makers to identified problems has been a blanket regulation that stops everything. In the wake of the alleged fraud and incompetence at the godly institutions, the policy makers are down the well traveled path again. One victim of this is derivatives. Derivatives are risk management vehicles, the simplest of which is an option - the right but not an obligation of doing something in the future. Derivatives help managers hedge risks they do ...