5 Questions
Which financial instrument involves an obligation to engage in a transaction in the spot market at a future date at terms agreed upon today?
Forward contract
What are contingent claims based on?
Underlying asset
Which type of derivative is conditional on an event occurring?
Options
What type of commitment includes credit derivatives?
Contingent claims
In forward commitments, what is specified along with the quantity of the underlying asset?
Date of the future transaction (expiration)
Explore the concepts of forward commitments, including forward contracts, futures contracts, and swaps, as well as contingent claims which depend on the outcome of an underlying asset. Learn about engaging in transactions in the spot market at a future date and the nature of settlements.
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