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Zimbabwe: How derivatives can help revive agriculture

Posted on 02 May 2012

Derivatives are financial instruments (contracts) that do not represent ownership rights in any asset but, rather, derive their value from the value of some other underlying commodity or other asset. When used prudently, derivatives are efficient and effective tools for isolating financial risk and “hedging” to reduce exposure to risk.
Derivatives increase the financial markets’ depth and encourage innovation that reduces reliance on cash………………………………………..Full Article: Source


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