Classify basic derivatives as forward-based locks or option-based rights.
Sort each derivative by its basic payoff shape. Forward-based lock Option-based right Venue or structure note Forward contract: privately agree today to exchange later on set terms Futures contract: standardized forward traded on an exchange Interest-rate swap: exchange fixed and floating cash flows over time Call option: buyer has the right to buy at the strike Put option: buyer has the right to sell at the strike OTC: privately negotiated terms that may customize amount, date, or reference Listed: standardized exchange-traded contract with more transparent prices Lock Symmetrical obligation Right Asymmetrical option
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