Question: a. What are the two basic types of derivative instruments? b. Derivative markets are nothing more than legalized gambling casinos and serve no economic function.

a. What are the two basic types of derivative instruments?

b. "Derivative markets are nothing more than legalized gambling casinos and serve no economic function." Comment on this statement.

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Answer a The two basic types of derivative instruments are Forward Commitments These are agreements between two parties to buy or sell an underlying a... View full answer

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