Juridical Analysis of Derivative Instruments

Author

Faculty member of Tarbiat Moalem University

Abstract

Financial derivative instruments, which are created by financial
experts, play an important role in the world of high finance. To deal
with the risk, mainly price risk, these instruments have appeared and
begun to change and promote day in, day out. Their importance may
appear when it happens to them to be published more than base
stock; great sum of money would be transferred by and ends by
paying the difference in price, not caring for contents of contract.
This research paper tends to have a juridical analyse over these
instruments. Explaining these instruments, first their legal nature
would be identified and then, juridical judgement would be inferred.
Most of the instruments which are created to satisfy the requirements
of economic agents can be revised by law. May be, these instruments
are misused, but this is incidental, as it may happen about other
legitimate instruments like principle of commerce.

Keywords