Treasury Management Part 2 Notes for SBI JIBO Exam – Derivatives, Futures, Options & Money Market
1. Introduction to Derivatives A derivative is a financial contract whose value is derived from an underlying asset such as: Stocks Bonds Interest Rates Currencies Commodities Key Features It is a future contract between two parties Value depends on spot market movements Used for: Risk Management (Hedging) Speculation Classification of Derivatives 1. OTC (Over-the-Counter) Products…
