De riva tives growth in the latter part of the 1990s continues along at least three dimens ions. Firstly , new p roducts are eme rging as the traditional building blocks – forwa rds and options – have spawned second and third generation derivatives that span comp lex hybr id, contingent, and path-dependent risks. Secondly, new app lica tions are expanding derivatives use beyond the specific managemen t of price and event risk to the stra tegic managemen t of portfolio risk, balance sheet growth, shareholder value, and overall business performance . Finally , derivatives are being extended beyond .