Important Points for IC 99 - Asset Management Exam
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Put option gives the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or befor a given date.
Interest rate swaps include swapping only the interest related cash flows between the parties in the same currency.
These pertain to swapping both principal and interest between the parties, with the cash flows in a different currency than those in the opposite direction.
Forex derivative is a derivative contract where the underlying asset is a particular currency or its exchange rate. The classification of forex derivatives includes : Currency futures, Currency forwards, Currency swaps, Currency options
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a certain amount of money at a given interest rate. The classification of interest rate derivatives includes : Interest rate swap, Interest rate cap / floor
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