Answer / d>k>d

Derivative is a financial instrument whose value is derived
from another asset or commodity. Derivatives are of 4
types.. Options, Forwards, Futures and Swaps.

Answer / lumina

Derivaties are risk reducing agents..or instruments for
hedging the risk involved in financial trnsactions. a FD
has an underlying asset such as share or foreign currency.
A FD help us to lock in a particular price for the
financial asset to be exchanged in future.

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