Open Access"The Role of Option Contracts in Reducing Derivatives Market Risk "An Empirical Study, 2000-2016: دور عقود الخيارات في خفض مخاطر أسواق المشتقات المالية "دراسة تطبيقية، للفترة: 2000-2016م"
Author(s) -
Abbas Fouad Hassan
Publication year - 2017
Publication title -
mağallaẗ al-ʿulūm al-iqtiṣādiyyaẗ wa-al-idāriyyaẗ wa-al-qānūniyyaẗ
Language(s) - English
Resource type - Journals
ISSN - 2522-3372
DOI - 10.26389/ajsrp.f020717
Subject(s) - actuarial science , simple linear regression , business , investment (military) , financial risk , financial market , financial instrument , variables , variable (mathematics) , capital market , measure (data warehouse) , regression analysis , finance , financial economics , economics , mathematics , database , machine learning , politics , computer science , political science , law , mathematical analysis
The study aimed to identify the role of the option contract to meet the needs of investors in capital markets and measure the relationship between the hedging against investment risks and reduce financial risks so as the investor is not exposed to financial losses. The study used simple linear correlation coefficient (Pearson) to measure the strength of the relationship between the variables of the study, the simple regression model to measure the nature of the relationship between the dependent variable and the independent variables of the study. One of the most important results of the study that the option is one of the tools of hedging against financial risks and provide investors with profits. The study recommended the need to raise awareness of the role of financial and investment option in hedging and risk reduction in financial markets and encourage deal.