Derivatives derive its value from the assets underlying it. If this statement is correct than why derivatives market always trades on Margin and how Margins keeps the market safe as compared to the cash market. In the past few years various instruments have been derived and are termed derivatives, you need to explain any four such instruments or investment options which can be termed as derivatives by the market. Note you need to explain this to a lay man who has no knowledge of share market.

Derivatives derive its value from the assets underlying it. If this statement is correct than why derivatives market always trades on Margin and how Margins keeps the market safe as compared to the cash market. In the past few years various instruments have been derived and are termed derivatives, you need to explain any four such instruments or investment options which can be termed as derivatives by the market. Note you need to explain this to a lay man who has no knowledge of share market.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 13PAE

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