Credit Derivatives
What are Credit Derivatives?Credit Derivatives (or CDs) are contracts where the underlying asset is a credit asset. The objective of such a contract is… Read Article
Derivative Instruments
Spot and Forward Interest Rate
What do we Mean by Spot and Forward Interest Rates?Spot interest rate is the yield to maturity of a bond with “x” number of… Read Article
Forward Interest Rate
What do we mean by a Forward Interest Rate?Forward interest rate is the interest rate that an investor can fix at the present day… Read Article
Spot Interest Rate
What do we Mean by the Spot Interest Rate?Spot interest rate is the yield to maturity on any zero-coupon bond with an “x” number… Read Article
Difference Between Warrants and Convertibles
Warrants and Convertibles are a type of derivative investment securities. Both these types of options give investors a right to further invest in certain… Read Article
Hedging Strategies: Using Forwards, Futures and Options
Investors use hedging strategies to lower their risk exposure. These are strategies to handle the given situation in the market in case things do… Read Article
Types of Derivatives Instruments – All You Need to Know
A derivative is a financial instrument that derives its value from an underlying asset. The underlying security could be shares, bonds, currencies, commodities, and… Read Article
Options on Futures – Meaning, How it Works, Importance, and More
Future and Options are a type of derivative instruments. These help investors to hedge their risk, as well as speculate on the future price… Read Article
Types of Forward Contracts – All You Need to Know
A forward contract is a type of derivative instrument. This is an agreement between two investing parties wherein the parties agree to buy or… Read Article
Interest Rate Options – Meaning, How it Works, Example and More
Interest Rate Options are a derivative financial instrument that allows an investor to gain from the changes in the interest rates. So, all these… Read Article
Payoff from Put Option
What is Payoff for Put Option?A put option is a financial agreement that gives its buyer a right to sell an asset such as… Read Article