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Derivatives

Callable Bonds

A normal bond can be issued with embedded options. One such bond is a callable bond. It is like a normal bond but with an embedded call option which …

Warrants

A warrant is a derivative instrument which gives the warrant-holder a right to buy the underlying stock at a pre-determined strike price. A warrant-holder can exercise it to buy the …

Forward Contract

Forward Contracts A forward contract is the easiest form of derivatives. Here, two parties enter into an agreement either to buy or sell something at a future date agreed …