FINC 306 TOP Study Guide Exam Questions and CORRECT Answers
Define Derivarive a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Forwards, futures, options, swaps Why use derivatives Risk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value market value is the sum of the market value of all the claims that could be traded
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