Chapter CFM13110

Published date16 April 2016
Record NumberCFM13110
Four basic types

Derivatives can be seen as falling into four basic types:

  • forward contracts (CFM13140)
  • futures (CFM13160)
  • options (CFM13190)
  • swaps (CFM13230).

These basic building blocks can be combined in different ways to create a myriad of derivative contracts. They can also be combined with debt instruments or other financial instruments. These arrangements can appear very complicated. But once the concepts...

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