During recent decades, financial markets have become the focus of governments'' attention. In fact, governments try to improve the economical conditions of their countries by developing the financial markets which have very important impacts on basic elements of economy. Financial markets have grown very quickly during the recent decades and the high rate of growth in financial markets has always been in parallel with the enhancements in risk magnitude of markets. Investors and financial managers are always worried of potential and existing risk in the financial markets and for this reason, there is always a huge demand for new risk management strategies and modern financial instruments for hedging and risk mitigation purposes. Modern financial instruments like derivatives contracts, especially futures contracts and options contracts which are more standardized and liquid in comparison with other derivatives contracts, have become very popular among investors and financial managers in order to reduce the potential and existing risks involved in their investments and projects.