Derivative 5


Derivative 5 : Derivatives are leveraged instruments that are linked to either specific financial instruments or indicators (such as foreign currencies, government bonds, share price indices, or interest rates) or to particular commodities (such as gold, sugar, or coffee) that may be purchased or sold at a future date. Derivatives may also be linked to a future exchange, according to contractual arrangement, of one asset for another. The instrument, which is a contract, may be tradable and have a market value. Among derivative instruments are options (on currencies, interest rates, commodities, or indices), traded financial futures, warranties, and arrangements such as currency and interest rate swaps
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