Derivative securities or derivatives are financial contracts that derive their value from the price of an underlying … asset, such as a stock or commodity, or even from an underlying financial index such as interest rates. Derivatives can … future events. Derivatives provide a unique and different way to invest and manage wealth that ordinary securities do not …

including out-of-the-money options or delta-hedging the returns. Unlike stock momentum, option return continuation is not … at-the-money straddles on individual equities. It finds that options with high historical returns continue to … significantly outperform options with low historical returns over horizons ranging from 6 to 36 months. This phenomenon is robust to …

An increasingly important aspect of managerial finance, derivatives and risk management practices internationally can … with references to exchange rate exposure, the use of options and stock returns of US banks …