Answer Posted / neha
There are 2 types of derivatives 1.Financial derivatives &
2. Commodity Derivatives
Commodity derivatives the underlying instruments is a
commodity which may be sugar, cotton, copper, gold, silver.
& Financial Derivatives the underlying instruments is
stock, bond, foreign exchange.
Financial Derivatives further divided into 2 types 1.basic
2.Complex.
1.Basics 4 parts 1. Forward 2. Future 3.Option 4. Warrents
& Convertibles 2.Complex 1.swap 2.exotics
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