The article looks at whether companies use foreign currency derivatives to protect themselves from exchange rate changes or to make risky bets. By studying S&P 500 companies in 1993, the researchers found that firms use these derivatives mainly for hedging, which helps reduce their exposure to exchange rate fluctuations. The decision to use derivatives is influenced by factors like foreign sales and trade, as well as the company's size and R&D spending. However, the amount of derivatives used is mainly determined by the level of exposure through foreign sales and trade.