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What is Overview of Financial Derivatives about?
Financial derivatives are contracts whose value is dependent on an underlying asset. There are two main types - over-the-counter (OTC) derivatives traded privately and exchange-traded derivatives. Common derivative contracts include forwards, futures, options, and swaps. Forwards involve an obligation to buy or sell an asset at a future date at an agreed upon price. Futures are similar but standardized and exchange-traded. Options give the buyer a right but not obligation to buy or sell an asset at a set pr
- Author
- mohammad bilal
- Language
- EN