1. What do you mean by derivatives?

2. Write down the types of derivatives.

3. Who are the traders in derivatives market?

4. Mention any five economic benefits of derivatives.

5. What are financial derivatives?

6. List and define the types of financial derivatives.

7. List any five differences between forward and future contracts.

8. What do you mean by options? Discuss different types of options contract.

9. Write a short note on Over- the- Counter (OTC) and exchange traded derivatives market.

10. Define the following terminologies:

a) Contract size;

b) Strike or exercise price;

c) Cost of carry; and

d) Margin;