forlenlwbq
forlenlwbq
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People and organizations might also look for arbitrage opportunities, as when the existing purchasing price of an asset falls below the rate defined in a futures agreement to sell the property. Speculative trading in derivatives gained a lot of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made bad and unauthorized investments in futures contracts.The real percentage of derivatives agreements used for hedging functions is unknown, but it appears to be relatively little. Likewise, derivatives agreements account for just 36% of the mean firms' total currency and interest rate direct exposure. However, we understand that numerous companies' derivatives activities have at least some speculative component for a variety of factors.

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