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Derivatives are financial contracts whose value is linked to the value of an underlying asset

Business Dec 09, 2021

Derivatives are financial contracts whose value is linked to the value of an underlying asset. They are complex financial instruments that are used for various purposes, including hedging and getting access to additional assets or markets.

a) Discuss the FOUR (4) types of derivative contacts with relevant examples.

b) Explain any TWO(2) economic benefits of derivatives.

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