How are the markets for derivative securities organized

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• What distinguishes a derivative security, such as a forward, futures, or option contract, from more fundamental securities, such as stocks and bonds?

• What are the important characteristics of forward, futures, and option contracts, and in what sense can they be interpreted as insurance policies?

• How are the markets for derivative securities organized, and how do they differ from other security markets?

Reference no: EM13923713

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