Derivatives
Traded Options - A derivative that gives the firm the
right (but not the obligation) to buy or sell an asset
in the future at a price that is agreed upon today.
Futures - A contractual obligation entered into in
advance to buy or sell an asset or commodity.
Forwards - A tailor made contract for the purchase of
an asset. Not traded on exchanges like futures.
Swaps - An agreement between two parties to
exchange the interest rate characteristics of two
loans.