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Create a 4 pages page paper that discusses risk takers related to investment strategies and speculative markets.

Create a 4 pages page paper that discusses risk takers related to investment strategies and speculative markets. Through this, one can even relate the stories heard from various failure resulting from the financial derivatives. However, as the author puts is, the financial derivatives are not necessarily destructive as many people would assume (Marthinsen 84-98). If the financial derivatives are used well, then chances of it being a success is possible. It is at this point that one relates to the derivative scams in many companies that ultimately incurred huge losses. If the financial derivatives could have been applied practically then the companies would not have had losses.

The book also gives a good insight on the trading strategies that different companies have adopted as a plan to succeed in the market. For instance, there is a discussion on the trading strategies of companies such as Banker’s Trust, Amaranth and even LTCM (Marthinsen 145- 241). This gives the reader an actual understanding of the existing market and how other trading partners have managed to survive through application of real life situations on the financial derivatives.

Most interestingly, the author almost convinces the reader that failure cannot occur. This makes the reader get the basics of financial derivatives. For instance, at the end of every chapter, Marthinsen explains the causes of failures in the derivative market in such a way that it seems to have alternatives. At the end of the work, one is convinced that no failures have a place in the derivative market based in the formulae given by Marthinsen.

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