The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps a

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The Derivatives Markets Contain Different Types Of Contracts Forward Contracts Futures Contracts Options And Swaps A 1 (70.19 KiB) Viewed 91 times

The derivatives markets contain different types of contracts. Forward contracts, futures contracts, options, and swaps are some common types of derivatives contracts. are customized agreements in which one party agrees to buy a commodity at a specific price on a specific future date, and the other party agrees to make the sale. Typically, goods are actually delivered under these contracts. Which of the following are used to hedge against price changes for input materials? O Financial futures Commodity futures Amir feels strongly that the 20-year U.S. Treasury bond yield is too low. Which of the following derivative positions would let him earn a profit if he turns out to be right? O A short position in interest rate futures O A long position in structured notes O A long position in interest rate futures O A short position in structured notes Forward and futures currency contracts reflect an obligation to either buy or sell currency at a future date, whereas options are contracts traded between buyers and sellers that give the option holder the right, but not the obligation, to buy or sell a specific (underlying) asset at a specific price, called the exercise or strike price, on or before an expiration date. allows you to exercise the option only on the expiration date.