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    Derivatives are financial contracts whose value is based on an underlying asset. Common types of derivatives include futures, which are agreements to buy or sell an asset on a specific future date, and options, which provide the right but not the obligation to buy or sell an asset at a predetermined price on or before a specified date. Derivatives allow investors to hedge risks or speculate on market movements.

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    Derivatives are financial contracts whose value is based on an underlying asset. Common types of derivatives include futures, which are agreements to buy or sell an asset on a specific future date, and options, which provide the right but not the obligation to buy or sell an asset at a predetermined price on or before a specified date. Derivatives allow investors to hedge risks or speculate on market movements.

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    15 views1 page

    Lim 2

    Uploaded by

    QwaAlmanlawi
    Derivatives are financial contracts whose value is based on an underlying asset. Common types of derivatives include futures, which are agreements to buy or sell an asset on a specific future date, and options, which provide the right but not the obligation to buy or sell an asset at a predetermined price on or before a specified date. Derivatives allow investors to hedge risks or speculate on market movements.

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    © All Rights Reserved
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    Common derivatives

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