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what is the difference between derivatives and swaps
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Answer Posted / s noushaad
derivatives are contracts who value is derived from
underlying asset, for example curd is a derivatives who
value is depends on milk price, again whose value depends on
demand and supply of milk
swaps are the agreement traded in OTCEI, for the exchange of
one stream of cashflow for another stream of cashflow.for
example currency swap(USDINR), exchange of US dollor for
Indian rupee, based on exchange rate.
| Is This Answer Correct ? | 18 Yes | 6 No |
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