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Corporate Finance NAME: XUECHAOYI XIAO SUID: 452547250Ways to use derivatives: hedge risk, speculate, arbitrage, change nature of a liability and investment[pic 1][pic 2]Forward: work in Over-the-Counter (OTC) Markets (telephone and computer-linked)+ the contract’s initial market value is zero+ popular on currencies and interest ratesDifference: forwards (Private contract between 2 parties; Not standardized; Usually 1.