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Business LibreTexts

12: Financial Derivatives

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    Learning Objectives

    By the end of this chapter, students should be able to:

    • Define financial derivative and explain the economic functions that financial derivatives fulfill.
    • Define and describe the four major types of derivatives: forwards, futures, options, and swaps.
    • Explain the economic functions of hedging and speculating.

    Thumbnail: Image by Gino Crescoli from Pixabay

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