What is derivatives Types of derivatives What is bond and debentures

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Derivatives are financial instruments whose value is derived from an underlying asset. Types include options, futures, swaps. Bonds are debt securities issued by companies or governments, while debentures are a type of bond backed by the issuer's creditworthiness.

Derivatives are financial instruments whose value is based on an underlying asset, such as stocks, bonds, commodities, or currencies
Types of derivatives include options, futures, forwards, and swaps
Options give the holder the right, but not the obligation, to buy or sell an asset at a specified price before or on a specified date
Futures are contracts to buy or sell an asset at a predetermined price on a future date
Swaps involve exchanging cash flows or liabilities based on different financial instruments
Bonds are debt securities issued by companies or governments to raise capital, with fixed interest payments and a maturity date
Debentures are a type of bond that is not secured by physical assets or collateral, relying solely on the issuer's creditworthiness for repayment

What is derivatives Types of derivatives What is bond and debentures

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