Question: Financial derivatives are defined as financial instruments whose prices are derived from the value of some underlying asset. The four most common type of financial

Financial derivatives are defined as financial instruments whose prices are derived from the value of some underlying asset. The four most common type of financial derivatives contract are: Forward Futures Options and Swap Required i. Elaborate on the characteristics and specification of each type of financial de-rivatives contracts ii. Describe how financial derivatives contract work in the financial market.

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