Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 6. two derivative products that may be offered thr

6. Two derivative products that may be offered through a stock exchange are an options contract...

90.2K

Verified Solution

Question

Finance

6. Two derivative products that may be offered through a stockexchange are an options contract and a futures contract. Brieflyexplain the main features of each of these products. Why might aninvestor use these products?

Answer & Explanation Solved by verified expert
3.6 Ratings (631 Votes)
Options Contract This contract gives the buyer of the contract the right not obligation to buysell something security in future at a specified price Features Strike Price The price at which the option owner can buysell the security in future Expiry Date Every option has an expiry date after which option hold no value Flexibility Options in OTC world are highly flexible and can be designed as per the needs of    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Use n 6 and p 0 6 to complete parts a through d below 6...

Statistics
Q

Use Lagrange multipliers to find the point on the given plane that is closest to the...

Basic Math
Q

Discussion about; Losing and gaining weight Obesity is a big problem in the industrialized countries. Nutrition facts...

Chemistry
Q

What evidence is there that mutations in Sonic hedgehog can in fact cause holoprosencephaly? Is it...

Biology
Q

A car of mass M and a small truck of mass 3M are travelling along two...

Physics
Q

Block B of mass 46.75-kg restsas shown on the upper surface of a 22.07-kg wedge...

Mechanical Engineering
Q

A piece of sheet metal, w = 24 inches wide, is bent to form the...

Basic Math
Q

hich of the following results in a null hypothesis p 0 44 and alternative hypothesis...

Statistics
Q

2 2 20 Points Find the following antiderivatives ln x

Calculus
Q

Gion Company is considering eliminating its Windows division, which reported a loss for the prior...

Accounting
Q

1. Operating overhead is expensed as an operating expense, whereas manufacturing overhead is capitalized in...

Accounting
Q

Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices....

Accounting