Financial Derivatives During the COVID-19 Health Crisis

Abstract

La versión española de este artículo se puede encontrar en: http://ssrn.com/abstract=3858999

During the last years, there has been an increase in the use of derivative instruments, in addition to significant losses reported by companies and financial institutions, putting the appropriate use of this type of product in the spotlight. These instruments supposedly reduce financial risks, but, paradoxically, they are accused of producing new risks. However, are the derivatives themselves or their misuse to blame for these losses? As such, a greater understanding of derivative products and their implicit risks in market disruption events is urgently required.

Keywords: Emerging Markets, Derivative Products, Risk Management, COVID-19, COVID-19 Pandemic

JEL Classification: C10, C13, G20, G28