Skip to main content
Business LibreTexts

12: Financial Derivatives

  • Page ID
    765
  • chapter objectives

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

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