Question: QUESTION 1 a) What is a derivative security? b) What are the differences among a spot contract, a forward contract, and a futures contract? c)

QUESTION 1 a) What is a derivative security? b) What are

QUESTION 1 a) What is a derivative security? b) What are the differences among a spot contract, a forward contract, and a futures contract? c) What is an option? How does an option differ from a forward or futures contract? What is the difference between a call option and put option? d) What is a swap? What is the difference between an interest rate swap and a currency swap? e) Which party is the swap buyer and which is the swap seller in an interest rate swap transaction

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