1. Derivatives intro + Commodity derivatives

Derive to take, receive, or obtain especially from a specified source ↩︎

Over-the-counter ↩︎

The credit risk associated with the default of the party on the opposite end of a derivative transaction ↩︎

Credit Support Annexure ↩︎

Replicate: make an exact copy of ↩︎

Over-The-Counter ↩︎

Profit and Loss ↩︎

Short forward = selling the underlying ↩︎

Long forward = Buying the underlying at a future date ↩︎

A zero-sum game is a situation where one person or group’s gain is exactly equal to another person or group’s loss, resulting in a net gain of zero ↩︎