Popcorn School Furniture Interview Questions and Answers

Q1. What are derivatives?
Ans. 
Derivatives are financial contracts that derive their value from an underlying asset or security.
• Derivatives can be used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives can be complex and carry significant risk.

• Derivatives played a role in the 2008 financial crisis.
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Q2. Different types of derivatives
Ans. 
Derivatives are financial instruments whose value is derived from an underlying asset or security.
• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Credit derivatives

• Interest rate derivatives

• Currency derivatives

• Commodity derivatives
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