Impose on investment firms contracts

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As you know, the derivatives are financial contracts with a value that is derived from an underlying asset. In a sense, they do not have value themselves. Over the past several years there have been calls for Congress to ban the use of derivative investing.

  1. Assume you want to keep the derivative investing. What constraints would you impose on investment firms over such contracts?
  2. How would they create value in the investment financial markets?

Reference no: EM133115800

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