What is Derivatives? Explain Futures, Swaps, Options.

Question

Accepted Answer

Derivatives are financial instruments whose value is derived from an underlying asset or benchmark.

Futures are contracts to buy or sell an asset at a predetermined price on a future date.
Swaps are agreements to exchange cash flows or financial instruments based on predetermined conditions.
Options give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific period.

Accepted Answer

As a team lead I will work with all team members to deliver the result. .no matter whether they like me or I like them team comes first.

Accepted Answer

Derivatives are a type of financial contract whose values depend on the underlying assets.

Futures are derivatives that obligate parties to buy or sell an asset at a predetermined future date and price.

Swaps are derivates through which two parties exchange cash flows arising from two different instruments.

Options are derivatives that give the option, not the obligation to buy or sell an asset at a predetermined future price. They allow investors to hedge against the volatility of an asset.

What is Derivatives? Explain Futures, Swaps, Options.

Top Barclays Finance Role interview questions & answers

Top HR questions asked in Barclays Finance Role