Summary:

Financial engineering is one of the most modern topics in the

financial sciences. It contributes significantly to finding alternatives and
solutions to the problems facing investment in the financial market. Risk
allocation , introducing new methods of financing , liquidating financial
assets , evaluating financial instruments and determining the value of the
institution. Which have contributed to the interdependence and increased
efficiency of financial markets through the creation of financial
instruments that can contribute to risk hedging.

Option contracts are one of the most important financial engineering

products, enabling investors to hedge against the risk of price volatility
through different strategies. Our study has addressed the role and
importance of trading these contracts on the Kuwait Stock Exchange.

Keywords: financial engineering products, risk, hedging,

option contracts.